LTD and STD

I've got some steps to help you set up your employee's insurance in QuickBooks, rose31.

We can create a payroll item for both Short-term disability  (STD) and Long-term disability (LTD) as an insurance benefit. This will add to your employee's profiles and paychecks.

Here's how:

1. Go to List on the top menu.
2. Choose Payroll Item List.
3. Tick the Payroll Item drop-down and choose New.
4. Select EZ Setup and click Next.
5. Then, follow the onscreen setup instructions that will prompt you to answer a series of questions based on the item type.

To set up an insurance item for a custom set up, just refer to this article: Set up a payroll item for insurance. Then, go to To set up an insurance benefit item using custom setup: section.

Then, create a paycheck for an employee then you'll see the LTD and STD insurance in the Other Payroll items section. 

For additional insights, you may check out these articles:

• Enter taxable third-party sick pay (disability)

• Group term life insurance payroll item setup

• Report Group Term Life Insurance (GTLI) on a paycheck

Feel free to reply to this post if you need help with creating paychecks applying the payroll item for insurance. I'm always here to help. Have a great day ahead. 

When I do the EZ setup, LTD and STD are not options.

If I do the custom setup per the link you sent, it is not a deduction from the employee paycheck.  All is being paid by the employer.

Hi there, @rose31.

You can select Miscellaneous Additions when using the EZ setup. Then, you have the option to rename it later as STD or LTD.

Here's how:

1. From the List menu, choose Payroll Item List.
2. Right-click anywhere and choose New.
3. Choose EZ Setup and click Next.
4. Choose Other Additions and click Next.
5. Choose Miscellaneous Addition and click Finish.
6. Edit the item and rename it as STD, LTD, or depending on your choice.
7. Click Next until you see the Tax tacking type window.
8. Choose the right type for the item. You can ask your accountant about this.
9. Click Next and click Finish on the last window.

When setting up the offset item, follow the same steps above. This time, select None as the Tax tracking type.

Additionally, when you add the items on the paycheck, you’ll want to enter a positive amount for the insurance item and a negative amount on the offsetting item. The amounts have to be the same.

Please let me know if you have other questions or concerns. I'll be around to help. Have a good one.

I have A question About Disability and Pay family Leave. I'm in NY state.

I have a third-party company that I paid every year for disability and pay family leave. I don't want my employees to pay for it. How can I remove that from payroll ?

Hi there, Domini.

Thanks for joining this thread. I'm happy to show you how to remove the Disability and Paid Family Leave item from payroll in your QuickBooks Desktop account.

There are just a few steps to get this done. Here's how:

1. Click the Lists menu at the top of the page.

2. Select Payroll Item List.

3. Right click on the item you'd like to remove and choose Edit Payroll Item.

4. Check the box for Payroll item is Inactive.

5. Click Next and enter the info for the following screen prompts until you're finished.

The following article provides additional info about setting up and managing payroll items for your insurance benefit plan.

With this info you'll be able to remove the disability and leave item. Please feel free to reach out in the comments below if you have any other questions.

How do you set this up in QuickBooks online?

Allow me to elaborate on things about setting up LTD and STD in QBO so you can get back to working order, uufb.

You'll need to get in touch with us and verify information on the third-party report since you're using QuickBooks Online Payroll. This will allow us to process third-party sick pay and collect any necessary taxes, including your employees' W-2.

Then, you must verify the following information on your third-party report:

• Employee's name
• Employee's Social Security Number
• Sick pay paid to the employee
• Federal income tax withheld
• Employee Social Security tax withheld
• Employee Medicare tax withheld
• State tax withheld
• Federal Employer Identification Number (EIN) number

Once the verification is done, you can contact us to process the sick pay. Here's how to reach them:

1. Sign in to your QuickBooks Online company.
2. Go to Help (?).
3. Select Contact Us.
4. Enter your concern, then select Let's Talk.
5. Choose a way to connect with us:

• Start a chat with a support expert.
• Get a callback from the next available expert.

If you use QuickBooks Online Payroll Premium or Elite, you can click Step 2 below to email the third-party report: Report third-party sick pay to QuickBooks Online Payroll and QuickBooks Desktop Payroll Assisted.

I'll also share this article to guide you. It covers running, printing, and customizing payroll reports in QuickBooks Online Payroll: Run payroll reports.

Let me know if you still have questions about setting up LTD and STD deductions in QuickBooks. I'm always here to help you out. Take care and have a great rest of the day!