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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

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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

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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

7 Comments
Highlighted
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

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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?

Highlighted
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

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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.

 


 

Highlighted
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.

Highlighted
Level 1

Monthly Stipen

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

Highlighted
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.

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