Hello, FCity. You'll need to manually override the insurance deduction to $0 on the 5th paycheck to avoid over deductions. Go to Employees > Pay Employees > edit the paycheck before finalizing.
Please note that in QuickBooks Desktop, the default rate and limit field in payroll items is for setting a fixed per-pay-period amount, not for monthly resets or proration.
Another option is editing the payroll item to an annualized weekly rate of $98.83 ($428.28 × 12 ÷ 52). With no monthly limit, this amount can run each pay period to reach the correct year-long totals. It would be best to consult your accountant or test thoroughly first to ensure it fits your setup.
To double-check everything's lining up, you can also pull up a Payroll Summary or Payroll Item Detail report and compare against your monthly premium target.
I’ll keep this thread open for any updates or anything else you’d like to share.
