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powerboard-deb
Level 1

Monthly Stipen

Our company pays employees who do not have insurance a set amount each month to help cover premium fees. They will find the insurance on their own and we will just write a check to them. How do I do this in Quickbooks Pro?  The only thing I could find is maybe printing an unscheduled paycheck each month.

Solved
Best answer January 23, 2019

Best Answers
HoneyLynn_G
QuickBooks Team

Monthly Stipen

Great day, @powerboard-deb.

 

Thank you for visiting us today. I can help you add a payroll insurance item on your employee setup.

 

You have the option to assign an additional item for the insurance of your employees. Here's how:

  1. Click Employees.
  2. Choose Employee Center.
  3. Double-click the employee name.
  4. Select the Payroll Info tab.
  5. Go to the Additions, Deductions and Company Contributions section.
  6. Create an additional item for the insurance and enter the amount.
  7. Click OK to save changes.

 

The insurance item is automatically added on the paycheck of your employee. You also have the option to adjust the rate or amount.

 

That should help you enter and record the insurance of your employees, powerboard-deb. For additional insights about setting up employees, you can refer to this article: Set up an employee in QuickBooks Desktop Payroll.

 

I'm still here to help you more if you have other payroll questions. Just leave me a comment below. Wishing you continued success!

View solution in original post

HoneyLynn_G
QuickBooks Team

Monthly Stipen

Hello again, powerboard-deb.

 

I appreciate you coming back to us for additional support. Allow me to share some more information about the insurance item.

 

You can decide whether you'll take it by the first or second payday. Then, just zero it out on the other payday period. This guarantees that it's only added once a month.

 

That's it. Let me know if there's anything else I can help you today. I'd be around to assist you more. Have a good one!

View solution in original post

11 Comments
HoneyLynn_G
QuickBooks Team

Monthly Stipen

Great day, @powerboard-deb.

 

Thank you for visiting us today. I can help you add a payroll insurance item on your employee setup.

 

You have the option to assign an additional item for the insurance of your employees. Here's how:

  1. Click Employees.
  2. Choose Employee Center.
  3. Double-click the employee name.
  4. Select the Payroll Info tab.
  5. Go to the Additions, Deductions and Company Contributions section.
  6. Create an additional item for the insurance and enter the amount.
  7. Click OK to save changes.

 

The insurance item is automatically added on the paycheck of your employee. You also have the option to adjust the rate or amount.

 

That should help you enter and record the insurance of your employees, powerboard-deb. For additional insights about setting up employees, you can refer to this article: Set up an employee in QuickBooks Desktop Payroll.

 

I'm still here to help you more if you have other payroll questions. Just leave me a comment below. Wishing you continued success!

View solution in original post

powerboard-deb
Level 1

Monthly Stipen

Great. That helped alot. One more question.

Payroll is every two weeks but the insurance stipen is monthly, by adding here will it take it out every payday or just once a month?

HoneyLynn_G
QuickBooks Team

Monthly Stipen

Hello again, powerboard-deb.

 

I appreciate you coming back to us for additional support. Allow me to share some more information about the insurance item.

 

You can decide whether you'll take it by the first or second payday. Then, just zero it out on the other payday period. This guarantees that it's only added once a month.

 

That's it. Let me know if there's anything else I can help you today. I'd be around to assist you more. Have a good one!

View solution in original post

aleffler
Level 1

Monthly Stipen

Is the stipend for Medical insurance an Addition or company contribution? Is it taxable income? Is it considered fringe benefits? 


@HoneyLynn_G wrote:

Great day, @powerboard-deb.

 

Thank you for visiting us today. I can help you add a payroll insurance item on your employee setup.

 

You have the option to assign an additional item for the insurance of your employees. Here's how:

  1. Click Employees.
  2. Choose Employee Center.
  3. Double-click the employee name.
  4. Select the Payroll Info tab.
  5. Go to the Additions, Deductions and Company Contributions section.
  6. Create an additional item for the insurance and enter the amount.
  7. Click OK to save changes.

 


 

MariaSoledadG
QuickBooks Team

Monthly Stipen

Hi aleffler,

 

You'll want to set up a stipend for medical insurance as a taxable fringe benefit payroll item. 

 

Here's how:

  1. Click Lists, select Payroll Item List.
  2. Click the Payroll Item drop-down arrow and select New.
  3. Select Custom Setup.
  4. Select either Company Contribution or Addition, and click Next.
  5. Enter a name for this item and click Next.
  6. Select an Expense account and Liability account from the drop-down lists and click Next.
  7. From the Tax Tracking Type drop-down list, select Fringe Benefits and click Next.
  8. Click Next twice.
  9. Enter that default rate in the first section of the Default rate and limit window if the benefit will be a specific amount.
  10. Enter the amount of any limits on the item in the second section of the window. Click Finish.

When you select the item as Company Contribution, this adds the value of the fringe to be taxed but doesn't increase the net pay. On the other hand, if you choose it as Addition, it adds the value of the fringe to be taxed and increases the net pay.

 

Here's an article for more information: Create Taxable Fringe Benefits Payroll Items.

 

You can electronically file and pay tax forms in QuickBooks: E-pay 940 and 941/944 Tax Forms.

 

Reply to this thread if you need further assistance. I'll be right here to help.

skrogers
Level 1

Monthly Stipen

If we do it this way, is the insurance amount taxed or not?

SashaMC
Moderator

Monthly Stipen

Thank you for joining the QuickBooks Community, skrogers. If you are setting up a taxable fringe benefit payroll item (as the agent mentioned above), any fringe benefit you (the employer) provide is taxable and needs to be added to the recipient's pay unless the law states to exclude it. Using this item as a company contribution or addition will result in this on the Federal Forms.

 

  • 940: Increases wages (line 3)
  • 941: Increases wages (line 2, 5a, 5c)
  • 944: Increases wages (line 1, 4a, 4c)
  • W-2: Increases wages (line 1,3, 5; reported in box 14)

 

Please let me know if you have any more questions. I'll be around to help. Take care and enjoy the rest of your day.

CSI5
Level 1

Monthly Stipen

Why doesn't Quickbooks allow you to specify which payroll period that the amount will be taken out? Our previous software did this & it was very helpful. This has too much chance of charging the employee more than once a month for insurance and not realizing it until the employee gets the check and complains.

KlentB
QuickBooks Team

Monthly Stipen

Hi there, CSI5.

 

Let me share some information about how insurance deduction works.

 

Once you've set up an insurance plan item, QuickBooks will automatically include it in your payroll until it reaches the deduction limit. If your employee has already been charged for the month, you can edit the insurance amount on the paycheck to avoid duplicate deduction. Here's how:

 

  1. Select Employees, then choose Pay Employees.
  2. Choose a check type.
  3. Select the appropriate schedule in the Create Paychecks section, and click Start schedule Payroll.
  4. Verify the pay period end date, check date, and bank account the money is drawn from.
  5. To see everyone's paycheck details, select Open Paycheck Detail.
  6. Change the amount of the insurance to zero.
  7. When the checks are ready to be created, select Continue.
  8. Check the amounts for each employee, then click Create Paychecks.

 I can understand why you’d want to have this option, though, especially if you’re only deducting your employee once a month. At times, we roll product updates based on our customers' requests. Rest assured, I'll take note of your ideas and suggestions to improve your QuickBooks experience.

 

Lastly, here's an article that you can read to help track where your business stands in terms of employee and payroll expenses: Customize payroll and employee reports.

 

If I can be of any additional assistance, please don't hesitate to add a comment below. Stay safe and have a great rest of the day.

T Morrison
Level 1

Monthly Stipen

How would I setup a hotel stipend that's paid once a month for a biweekly pay period?  The same way?

 

Thank you

Catherine_B
QuickBooks Team

Monthly Stipen

Yes, T Morrison, you can set up your monthly stipend the way HoneyLynn_G laid it out. 

 

You can add Insurance to the employee's payroll information and the system will automatically add the payroll item. You have the option when you'd want to pay the monthly stipend. Just zero it out to avoid duplicates. 

 

Feel free to use these links for your reference: 

 

Please don't hesitate to post your questions here. Take care and stay safe!

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