Has anyone set up a QSEHRA for their employees? How did you do it?

Welcome to the Community. I can help you set up the Small Employer Health Reimbursement Arrangement (QSEHRA).

Please be aware that our payroll services do not automatically include employer-sponsored health insurance. Depending on your payroll service, you may need to contact us to have it included or take additional steps when filing your health insurance on W-2s.

If you wish to add the health insurance amounts manually, follow these steps:

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

For further details about how to reimburse your employees, please check out this article: Report employer health insurance on W-2s.

You can also contact our Payroll Support if you want us to add it on your behalf or need guidance on tracking it.

Moreover, you can generate various payroll reports that provide a detailed view of your employees' gross pay, deductions, and tax data. For more information, please refer to this article: Run payroll reports.

Let me know if you have further concerns about setting up QSEHRA or require assistance with QuickBooks. Keep safe.

Thank you for this information - it will help at year end when I need to do W2's.  I also need to know how to set up for the actual reimbursement and ditribution of the funds.  

Glad to know my colleague provided the helpful information, Waterma. I'm here to help you set the reimbursement and distribute the funds correctly.

In QuickBooks Online Payroll, you can create a reimbursement item by following the steps below:

1. Go to Payroll and then Employees.
2. Select your employee.
3. From Pay types, select Edit.
4. Scroll to the Additional pay types section and select Reimbursement.
   • If there's an existing reimbursement pay type, you can add a new one in the Common pay types section dropdown. Just select + Another Reimbursement type to add new.
   • You can add the default amount or leave it blank and enter it as you run payroll.
   • You can also rename this pay type. To rename, select Edit next to Reimbursement.
5. Once done, click Save.

Once done, I recommend updating your accounting preferences to ensure the reimbursement amounts are posted to the correct account.

Then, when you run payroll, enter an amount in the Reimbursement field.

Don't hesitate to jump right back and ask more questions if you need anything else. We're always ready to help if you need one. 

How do you set up a payroll reimbursement item on Quickbooks Desktop Pro Plus?

You can set up a payroll reimbursement, by navigating to the Employees menu and then selecting Manage Payroll Items, AlohaCat808. Here are the steps to guide you through the process.

Reimbursements are non-taxable payments, which means they are not included on any payroll tax forms. To create a reimbursement, you can follow the steps outlined below:

1. Go to Employees, and select Manage Payroll Items.
2. Click New Payroll Item and choose Custom Setup. Then, select Next
3. Select Addition, then select Next.
   
4. Enter the name of the Reimbursement item. Select Next.
5. Select an expense account for tracking this item.
   • Select an expense account to track travel or mileage amounts. 
   • If this will be an advance to the employee, choose an asset account.
6. Set the Tax Tracking type to None. Then select Next.
7. Under Taxes, none should be selected. Select Next.
8. For amounts paid per mile/kilometer, select the Based on Quantity checkbox. Then select Next.
9. Choose to calculate on Net Pay. Then select Next.
10. Enter a Default Rate. Then select Finish.
    

Once done, update the accounting preferences to ensure the reimbursement amounts will be posted to the correct account. 

After that, you'll now have to add the reimbursement item to your employee’s record:

1. Navigate to the Employees menu and select the Employee Center.
2. Find and double-click the employee's name.
3. Next, go to the Payroll Info tab.
4. Then, add the item from the dropdown list under Additions, Deductions, and Company Contributions.
5. Click OK.
   

When finished, create a paycheck for that employee. The reimbursement item will show in the Other Payroll Items area of the Preview Paycheck screen. Then, enter the amount of the reimbursement.  

For reference about the process, please see the steps for QuickBooks Desktop Payroll in this article: Reimburse your employee.

For more details about your business finances and information about your employees, you can visit this article for guidance: Run payroll reports.

Feel free to comment below for further assistance or questions about creating a payroll item in QuickBooks Desktop. I'm sure to help anytime. Take good care.

I have entered the information in box 12FF as instructed but it does not show up on one of my employees W-2 when I go to print it.  I have another employee with a Simple IRA deduction as well as the QSEHRA and it does show up correctly on his W-2.

I have set this up as instructed for box 12FF, however even though I entered the dollar amount it does not show up when I go to print one of my employees W-2.  I have a second employee with a Simple IRA deduction as well as the QSEHRA and it shows up correctly on his W-2.  Any suggestions on how to fix this?

Thank you for following the instructions and checking whether the amount appears in box 12FF, C3 Beth. We can examine the specifics of your setup to ensure that their W-2 forms accurately reflect all the deductions.

Start by verifying that you have submitted the amount entered in the dollar amount in box 12FF. Please also review if there are any additional settings or requirements specific to that employee's profile that may affect the W-2 output.

If the amount is still missing when printing after configuring everything, I suggest contacting our live support team. They have all the necessary information to investigate the missing amount further. Follow the steps below:

1. Go to the Help icon and choose Search.
2. Enter help in the search bar, then select the Contact Us button.
3. You can connect with us through Callback or Chat.

Please note our operating hours so you can reach us at your convenience. Refer to this article and select QuickBooks Payroll: Get help with QuickBooks products and services.

Additionally, you can explore QuickBooks Payroll to streamline the W2 generation and submission.

Furthermore, save this guide to keep a copy of your current or prior year: Print your W-2 and W-3 forms.

To ensure you stay on track with this year's tasks, review the dates in this material to ensure you accomplish them promptly: Year-end checklist for QuickBooks Online Payroll.

It's essential to take extra care to ensure that all information on W-2 forms, including Box 12FF, shows the actual benefits and compensations provided during the tax year. For additional concerns regarding payroll taxes, add them below. We're here to help you stay compliant with IRS regulations.