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gcicabinets
Level 1

Health insurance premium rebate

We received a premium rebate check from our health insurance provider for 2017 - 

this amount will in turn be reimbursed to our employees by company check. 

I am newer to QB and am not sure how to record this rebate check and then 

how to record the payment back to the employees - I haven't been able to find 

any questions regarding this type of issue

3 Comments 3
HoneyLynn_G
QuickBooks Team

Health insurance premium rebate

Welcome to the Community, @gcicabinets.

 

It's nice to have you here. I can help you rebate the health insurance premium to your employees.

 

First, let's add the Reimbursement pay type on the employee profile. I'll show you how:

  1. Click Workers on the left panel.
  2. Under Employees tab, choose the employee name.
  3. Click the Pencil (edit) icon beside Pay.
  4. Under How much do you pay this employee? click Add additional pay types if you haven't selected any other pay types, or click the pencil icon if you have.
  5. Select the Reimbursement checkbox.
  6. Click Done.

 

After adding this pay type, when you create a regularly scheduled paycheck or an unscheduled check for the employee, the Reimbursement field appears on the Run Payroll page. All you have to do is enter the desired amount.

 

 

For in-depth information, you can refer to this article: Reimburse an employee. Then, go to the QuickBooks Online section.

 

That's it. I'm free for any follow up questions, just leave a comment below. Have a wonderful day!

amys711
Level 2

Health insurance premium rebate

This solution does not properly address the taxability of this health reimbursement.  If it is a refund of premiums that were previously deducted pre-tax, then when reimbursed to the employee, they need to be considered taxable.  There are instructions on how to handle in Quickbooks Desktop (https://community.intuit.com/articles/1437615-medical-loss-ratio-mlr-rebates), but not for Quickbooks Online. :(

Rose-A
Moderator

Health insurance premium rebate

Good day, amys711.

Handling health insurance premium rebate in QuickBooks Online is my priority. Let's get your employee reimbursed.

 

Other Earnings is a taxable reimbursement to your employee. To set up this payroll item, see the steps below.

 

  1. Click Workers on the left panel.
  2. Under the Employees tab, choose the employee name.
  3. Click the Pencil (edit) icon beside Pay.
  4. Under How much do you pay this employee? Click Add additional pay types if you haven't selected any other pay types, or click the pencil icon if you have.
  5. Click Even more ways to pay option.
  6. Choose Other Earnings.
  7. Hit Done.

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Once done, you can manually enter the amount when you create a paycheck for your employee.

 

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To know more about pay types in QuickBooks Online here's a helpful article: Pay types overview.

 

For account discussion, feel free to reach out to our QuickBooks Online Support. To reach us, please follow these steps:

 

  1. Sign into your QuickBooks Online Company.
  2. Click (?) Help at the upper right corner.
  3. Select Contact US on the pop-up.
  4. Enter a brief description of your concern then hit Continue.
  5. Click Get a callback.
  6. Enter your contact information.
  7. Select Call me.

Should you need more help in reimbursing your employee, please let me know. Have a good one.

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