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Level 2

how to credit employee insurance

I want credit employee an amount per paycheck as a way to help them pay for insurance. How do i do that in quickbook?

3 Comments 3

how to credit employee insurance

 I'd be glad to walk you through the steps on how to credit your employee, @fd_com


You'll have to set up a Payroll Item first, so you can credit your employee an amount per paycheck. Also, make sure the expense and liability accounts of the created company contribution (payroll item) are the same.


Here's how:


  1. Go to Lists, and then choose Payroll Item List.
  2. Select New from the Payroll Item drop-down.
  3. Choose Custom Set-Up and click Next.
  4. Select Company Contribution and click Next.
  5. Name the item, and then click Next.
  6. Choose the vendor name to whom your health insurance premiums will be paid and an account number identifier if applicable.
  7. Select the Payroll Liability account where the health insurance employer contributions will be tallied up for later payment.
  8. Select the Payroll EXPENSE account where the health insurance expense costs will show for your company on the Income Statement.
  9. Click Next.
  10. For the Tax Tracking Type, choose Health Coverage Cost.
  11. Click Next.
  12. In the Calculate based on quantity window, choose Neither and select Next.
  13. Input a Default rate and limit, if applicable. Otherwise, leave the default rate and limit blank and enter the rate and annual limit in the individual employee's Payroll Info window.
  14. Hit Finish.


If you need further assistance with the steps, I'd suggest contacting our Payroll Support Team. They have tools like screen sharing that will guide you in setting up the credit for your employees. To reach them, just click this link: Contact QuickBooks Desktop support.


Also, here's a helpful article that will help you in case you want to correct year-to-date (YTD) additions or deductions on a paycheck: 



If you have any further questions or concerns about managing your payroll in QBDT, please know that you can always tag my name. I'm here to help you in any way I can. Enjoy your day!

Level 2

how to credit employee insurance



maybe i didn't ask question right, I want to give specific amount of money to employee to buy health care outside company offer where ever they choose. Do i do the same way? if that the case, i don't know vendor so what should i put in vendor name?


how to credit employee insurance

Thanks for getting back to us, fd_com.


You'll have to create a payroll item first to keep track of the additional help you've provided. Thus, the steps shared by my colleague is the correct way of recording  it.


You can use a dummy name to use a vendor when creating the payroll item.


Afterward, you're good to send a paycheck.


That should do it. Keep me posted whenever you need help.

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