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How do you set up Aflac as an employee deduction? (100% employee pd, after tax) Can I use other payroll deductions? Would COA be Payroll Liabilities & Payroll Clearing?

 
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Best answer 10-19-2018

Accepted Solutions
Moderator

Hi zconst2, Yes, you can use the payroll deduction setup...

Hi zconst2,

Yes, you can use the payroll deduction setup for any employee medical insurance like Aflac. Let me show you how to it:

  1. Go to Employees and select the name of the employee.
  2. Click on the Edit icon for Pay.
  3. Click on the Add a new deduction link.
  4. Select New deduction/contribution.
  5. Select Health Insurance.
  6. Select Medical for Type.
  7. Enter the name of the provider (Aflac).
  8. Enter the amount to be deducted every pay period and Annual Maximum (optional).
  9. Choose either Taxable insurance premium or Pre-tax insurance premium.
  10. Click on OK.

QuickBooks Online will automatically create a liability account for this medical insurance. You can review the account setup by going to Payroll Settings, and then Accounting under Preferences

When you're about to pay this medical premium, you can go ahead and create a Check. Just select the liability account for this medical insurance. You may also create a journal entry to debit the funds from the liability account to any clearing account you've created. 

If you have more payroll questions, I'd be glad to help. Just post them here. 

14 Comments
Moderator

Hi zconst2, Yes, you can use the payroll deduction setup...

Hi zconst2,

Yes, you can use the payroll deduction setup for any employee medical insurance like Aflac. Let me show you how to it:

  1. Go to Employees and select the name of the employee.
  2. Click on the Edit icon for Pay.
  3. Click on the Add a new deduction link.
  4. Select New deduction/contribution.
  5. Select Health Insurance.
  6. Select Medical for Type.
  7. Enter the name of the provider (Aflac).
  8. Enter the amount to be deducted every pay period and Annual Maximum (optional).
  9. Choose either Taxable insurance premium or Pre-tax insurance premium.
  10. Click on OK.

QuickBooks Online will automatically create a liability account for this medical insurance. You can review the account setup by going to Payroll Settings, and then Accounting under Preferences

When you're about to pay this medical premium, you can go ahead and create a Check. Just select the liability account for this medical insurance. You may also create a journal entry to debit the funds from the liability account to any clearing account you've created. 

If you have more payroll questions, I'd be glad to help. Just post them here. 

Community Contributor *

Hi, how would I do this with QuickBooks Pro 2016?

Hi, how would I do this with QuickBooks Pro 2016?
OIM

How can I set this up for the same thing but 100% company...

How can I set this up for the same thing but 100% company paid? We pay the Aflac premiums for a few positions in our company but not all of them.  I was hoping there's a way for the deductions on the company paid premiums to be automatically calculated in the payroll liability along with the Employee paid deductions.
OIM

How do I reimburse an employee for them paying their own...

How do I reimburse an employee for them paying their own medical coverage and i want to show it on their pay stub.  
Active Member

Re: How do you set up Aflac as an employee deduction? (100% employee pd, after tax) Can I use other payroll deductions? Would COA be Payroll Liabilities & Payroll Clearing?

I have just been writing checks  to Aflac and not debiting them to a liability account. The checks are posted to my wages-Aflac account. How do I create a journal entry to correct this?

Experienced Member

Re: Hi zconst2, Yes, you can use the payroll deduction setup...

Thank you for this info.  I am kind of in the same situation, but the CPA wants to make sure only st and fed w/h gets taxed , not medicare and SS.  Is that even possible?

QuickBooks Team

Re: Hi zconst2, Yes, you can use the payroll deduction setup...

Hello everyone, you all have great questions and I will be happy to answer all of them.

 

I will tag each of you with the answer to your individual questions to help avoid any confusion.

 

@GarlynGay provided some great steps for setting up a deduction and contribution in QuickBooks Online. 

 

@office5. You would use the same steps provided, but instead of setting up a deduction you would set up the company contribution section. This will allow you to track how much is being paid for them, while not actually paying it to them. 

 

@lmj11611. To add a deduction in QuickBooks Desktop, check out this article.

 

@Brandy23. To create a Journal entry, please follow the steps in this article.

 

@dianem1. You can add the reimbursement pay type by following the steps here.

 

@MAWIL. The system automatically will apply the applicable taxes. If you'd like to let me know which payroll product you are using I will be happy to provide the best way to get this working the way your CPA prefers.

 

If anyone has any further questions, please don't hesitate to reach out! I want to make sure everyone is able to get this set up the way they need to. 

Super Contributor **

Re: How can I set this up for the same thing but 100% company...

 
Highlighted
Super Explorer ***

Re: Hi zconst2, Yes, you can use the payroll deduction setup...

Why is Aflac not showing up on the W2?

Moderator

Re: Hi zconst2, Yes, you can use the payroll deduction setup...

Hello Vitan,

 

How did you set up the AFLAC contribution? Was it set up as Pre-tax Health Insurance or Taxable Health Insurance? 

 

For pre-tax deduction, it will decrease the amounts in boxes 1, 3, and 5. On the other hand, taxable deduction does not show up on the W-2 form. That's the reason why you can't see the AFLAC contribution from your employees and employers.

 

This article provides descriptions of the supported pay types and deductions in QuickBooks Online Payroll: Supported Pay Types and Deductions.

 

Let us know if you have any questions. Thank you! 

Experienced Member

Aflac Pre & Post deductions.

I am having problems setting up Alfac in desktop for employees who want both pre and post tax options.  I don't see the dropdown box on employee setup that gives those options. In payroll setup, company, I can choose either/or. you give me specific instructions for desktop please. Thanks Jane

QuickBooks Team

Re: Aflac Pre & Post deductions.

Hi there, janesabindavis.

 

You’ll need to setup a payroll item and add it on the employee’s profile or paycheck. Also, you’ll need to select the correct tax tracking type when creating the item so they appear on the forms correctly. If you’re not sure which tax tracking type to select, I’d recommend getting in touch to Alfac. 


For further information about setting up payroll items, please refer to this article: https://community.intuit.com/articles/1762839


Drop by again if you have other concerns with QuickBooks. 
 

Experienced Member

Re: Hi zconst2, Yes, you can use the payroll deduction setup...

This only works if you are using the Quickbooks payroll. 

 

How do you set up these accounts if you are using a 3rd party payroll service or even manual payroll.

QuickBooks Team

Re: Hi zconst2, Yes, you can use the payroll deduction setup...

Let me help you with this, @ondemandoffice.

 

You can set up an expense and liability accounts for your payroll expenses and liabilities.

 

Let me show you how:

  1. From the left menu, select Accounting, then Chart of Accounts.
  2. Click New.
  3. Select an Account type and Detail type.
  4. Enter a Name that describes the account.
  5. Click Save and Close.

Then, use a journal entry to record the paychecks processed by the third-party payroll service. Feel free to read through this article for your guidance: Record payroll transactions manually

 

Let me know if there's anything else you need and I'd be glad to help.