Any success with Full Service Payroll and QSEHRA?

Thanks, katherinjoyceO!

I think we already did everything as instructed to in the link you provided, as far as setting up the QSEHRA reimbursement type is concerned.  I will note that the instructions applicable to us for setting up the W2 reporting state the following, highlighted in red:

Intuit Online Payroll Full Service/QuickBooks Online Payroll (all other versions)Let’s add benefits with QuickBooks Online Payroll Full Service, QuickBooks Online Payroll Core, QuickBooks Online Payroll Premium, or QuickBooks Online Payroll Elite

Contact Payroll Support for assistance.

This is the part that we did last year when we called to have this set up.  Yet, it appears it never was, and as far as we know it still isn't fixed.

This is an issue that seems to come up over and over again with Full Service: many features available to users in the lower levels of Quickbooks are not accessible in Full Service and require us to contact customer service in such cases.  While I can understand some of the thinking behind that, the problem is the lack of transparency for the user, especially when snafus like the W2 reporting arise.

We will try contacting customer support again in the coming week to see where this stands.

As per this discussion, I tried to reach out to Customer Support. Here's a quick run-down of my experience: 

1) Request a callback. Get a call from someone who isn't part of the full-service payroll team, and doesn't know about QSEHRA. Takes roughly 30 min on hold to figure it out. Ends up suggesting I call a number to reach someone at full-service payroll. Call that number, the automated message says the number is not in use. 

2) Request call back again. Someone from full-service payroll calls. Explain the situation, takes another 30 min or so on hold for her to figure out what can be done. Finally sends me a step-by-step description for QuickBooks Online Payroll Enhanced and says the same interface will be available today for me as well and that I'll be able to update the w-2 content free of charge. If it doesn't she recommends calling customer support. 

3) Come today, no such interface is available and call back isn't available. I won't be surprised if they'll attempt to charge us for this come next week. What a joke. 

I was not able to get my corrected W2s this year. We pay QSEHRA and had the same issue. It’s months of calls and messages. Very frustrating and I’m concerned about next year with a full year if QSEhRA benefits. 

I hear your sentiments, @29440. This isn’t the kind of impression that I’d like you to have. Allow me to chime in and make sure you get routed to the right direction of support to sort this issue with QuickBooks Online Payroll. 

I realize the necessity of getting this handled as soon as possible. With that, I’d suggest reaching out to our Payroll Support Team again. They have tools to pull up your account in a secure environment and will assist in correcting your W2s. 

In the meantime, I'll share with you this article if you want to know more about how report health insurance you offer or reimburse to your employees on their W-2s: Report employer health insurance on W-2s.

You can always reply or reach out to us again if you need anything else about payroll in QBO. We're always here to guide and assist whenever you need help. Have a good one!

How is it that this thread is labeled "solved"? It's clear from the responses that QB doesn't have a way to simply track QSEHRA payments the way they do standard health insurance reimbursements or HSAs, so they show up correctly on a W-2. When I contacted a support rep they encouraged me to simply call it a reimbursement, but there was no way to designate it as a tax-advantaged, qualified QSEHRA reimbursement so it would show up the right way on the W-2. QB clearly states that setting up a pay type as "Reimbursement" means it won't show up on the W-2 at all.

I contacted Intuit the middle of January to have them adjust several employees W2 (box 1) gross wages to account for the QSHRA reimbursement. I have no comment as to weather it was fixed. Very frustrated!!! 

I'm very concerned that I will have to go through this every year for those employees who's spouses carry the Health Insurance.

I know that we can't be the only business out there.

You would think that they would rather have us fix the W2's than to pay wages to someone on their end.....just a thought.

Why can you do the adjustments on QB Desktop but not in QuickBooks Online?

Thank you for bringing this to our attention, @rbird64. Let me direct you to the proper support available to sort this out.

Also, here's an article you can read to learn more about connecting to our support: Contact Payroll Support. 

Know that the Community will always be here if you need additional assistance with correcting your Form W-2. Take care! 

They will send you corrected W2 forms.  Last year it took Intuit like 6 months to send the corrections.  So all employees in our tiny company had to file for extensions with the IRS.

Since I am the originator of this thread from like 3 years ago, my only update is that nothing has changed.  Every year, Intuit has filed incorrect W2 forms that do not properly account for the QSEHRA payments in box 12.  And every year we have to get on the phone with Intuit customer service, convince them of their error, and finally get the W2 corrections.

So yeah, this issue that this thread is talking about should not be considered as "Solved".  This an ongoing problem.

Hi! 

I had the same issue for 2 years. When I got help adding QSEHRA to my payroll initially, I was not told that I had to go in and add the QSEHRA to the W2s at the end of the year myself. In December, we are to go in and edit the W2s before they are issued. Here is what I did for my employees (under 50). 

Next year I should be able to do this correctly, would have been easier if I had known it was my job to edit the W2's going in. 

Hope this helps  

Qualified Small Employer Health Reimbursement Arrangements (QSEHRA)
If you’re a small business with 50 or fewer employees, and you reimburse your employees for healthcare, you may also be required to report QSEHRA on your W-2s.

Step 2: Report health insurance

If you have automatic tax payments and filings turned on, you can add your health insurance amounts from December 2, 2022 through January 1, 2023.

If you have automatic tax payments and filings turned off, you can add your health insurance amounts starting December 2 until you file them with the government.

1. Select Taxes, then select Payroll Taxes.
2. Select Filings.
3. Select Resources.
4. Select W-2s.
5. From Employee W-2s, select Edit Box 12/13 on W-2 Copies B, C, & 2 (employee).
6. Enter the dollar amount for each employee:
   • Use Box 12DD for coverage you provide your employees.
   • Use Box 12FF for reimbursements you give your employees.
7. Select Submit.

I was able to do edit Box 12 AA & 12FF  but the problem is we also need to edit Box 1, gross wages.

We are reimbursing employees through our QSEHRA for employee's spouse's group health policy that was paid for on a pretax basis by the spouse. So we must report the amounts paid to those employees that year as wages subject to tax withholding in box 1. 

This is what we are waiting for Intuit to adjust.

HEY! was this ever solved? I am trying to figure out how to setup this on the payroll correctly so it is pre-tax. Seems like it is taxed every paycheck I add the reimbursement on.

Even if I have to add on W2 ad end of year is fine, but why is it not Pre-Tax on payroll?

I appreciate you for joining this thread concerning payroll item setup in QuickBooks Online (QBO) Payroll, @Maryse928. 

In our QuickBooks Payroll services, we don't automatically report employer-sponsored health insurance on W-2s. Also, to ensure the setup of this item, you can contact us to have this entered for you correctly if you're using full-service payroll. Doing so will give our support the option to look into your account and elaborate on the reasons for how the payroll item should appear on your paychecks.

Here's how:

1. Sign in to your QuickBooks Online account.
2. Click the Help button.
3. In the QuickBooks Assistance chat box, select Talk to a Human or tap the Contact Us button at the bottom.
4. Then, type in your reason for contacting us in the What can we help you with? Box and click Continue.
5. From there, choose a way to connect with us: Chat with us, get a Callback, or call our support line directly by getting our Phone number.

Additionally, refer to this article for other options when contacting them. You can also scroll down to the bottom to see their phone number, support schedule, and hours to contact them at the time of your convenience: Contact Payroll Support.

Otherwise, you can follow the steps below to add the amounts until you file them with the government. This is to keep you compliant in reporting this health insurance on your W-2s manually:

1. Go to the Taxes menu and select Payroll Taxes.
2. In the Filings tab, select Resources, then, W-2s.
3. From the employee's W-2s, select Edit Box 12/13 on W-2 Copies B, C, & 2 (employee).
4. Use Box 12FF for reimbursements you give your employees and enter the dollar amount for each employee. Then, click Submit.

I'll also add this article as a reference in reporting health insurance on your form: Report employer health insurance on W-2s.

Moreover, QuickBooks provides several payroll reports that offer a detailed view of your employee's gross pay, deductions, and tax data. To learn more about these reports and how to access them, you can visit this article: Run payroll reports.

The Community is always available whenever you need assistance with managing your payroll entries or filing forms. Take care!