How do I treat an s corp health insurance premium refund in payroll?

Thanks for bringing this up in the Community, @LAC1.

You can record the refund you received from your insurance provider as a bank deposit. This way, you accurately capture the cash inflow returning to your company. I'm pleased to walk you through the process.

Here's how:

1. Navigate to the +New button, then Bank deposit.
2. Choose the bank account where the refund was deposited.
3. In the Received From field, enter the insurance company's name.
4. Select an appropriate account (e.g., Health Insurance Expense) under the Account dropdown. If you're uncertain, I recommend reaching out to your accountant for guidance. If you don't have one, you can find here.
5. Enter the refund amount and then add any necessary details.
6. Finally, click Save and close.

If you need to generate, print, and personalize payroll reports to gain deeper insights into your business' finances, check out this article for more guidance: Run payroll reports.

I'm here and ready to assist if you have any other payroll-related concerns. I'm just a few clicks away. Have a great day, LAC1!

@jeanbiverly_  You said:

"You can treat an S Corporation health insurance premium refund by running a check expense outside of payroll. This won't be included in payroll as it's considered taxable.

Here's how:

1. Log in to your QuickBooks Online (QBO) account.
2. Navigate to the +New button, then Expense.
3. Enter the name of the insurance company that issued the refund in the Payee field.
4. Choose the appropriate account for this transaction (e.g., Health Insurance Expense) from the Category dropdown.
5. Fill in the payment amount, date, method, and details.
6. Finally, click Save and close."

You do understand that @LAC1  was given a refund by their former insurance provider.

Why are you advising them to recognize the refund they were given as an expense?