How to set up Aflac payroll deductions in QB desktop

Hi there, @lpenney18.

You can set up a payroll item for your Aflac insurance for both employee and employer. Let me guide you through the steps.

Before we start, please know that deductions that fall under the cafeteria plan reduce the employer's share of taxes because the wage reduction is not subject to Social Security, Medicare, and federal unemployment taxes (FUTA).

For your employee, you can set up a payroll item for Insurance Benefits deduction using the EZ setup. Here's how:

1. Go to the Lists menu, then select Payroll Item List.
2. Click the Payroll Item drop-down, select New.
3. Select EZ Setup, then click Next.
4. Choose Insurance Benefits, then select Next.
5. Then, follow the on-screen instructions.

Once done, you can set up a payroll item for Company Contributions to the employer side. Since it's just for recording for purposes, the company contributions for the insurance won't be included in your employee's paycheck. To set up, you can follow the steps 1 to 3 and select Other Additions.

I'm adding these articles for more details: 

• Set up a payroll item for insurance.
• Set up a Section 125 Health Insurance (Cafeteria Plan).

Please post a reply below if you have other concerns with your payroll transactions in QuickBooks Desktop. I'll be more than happy to assist you again. Have a great day and take care always.

Thank you! This is really helpful, but I have more questions. How can I have this included in the 125 plan? That is the ultimate goal, but as of right now these policies are already set up in our payroll but it was done incorrectly. If I set these up per your instructions should I then delete the items already set up that were incorrect, or will this mess up payroll reports?

Thanks for getting back to this thread, @lpenney18.

Yes, you need to follow the steps provided above to properly set up your payroll deductions. This will also affect your payroll reports, however, you can still correct it by editing your paychecks or creating some liability adjustments.

1. Go to the Employees menu and select Payroll Center.
2. Proceed to the Transactions tab and click Paychecks.
3. Double-click on the paycheck that you need to edit.
4. Click Paycheck Detail.
5. Under the Other Payroll Items section, enter the correct payroll item and the amount.
6. Select OK and click Save and Close.
7. Once prompt, select Yes to record your changes.

Just repeat these steps to correct all of your incorrect paychecks.

Also, you can check out this article if you need further guidance on how you can edit your payroll item on your paychecks: How to change incorrect payroll items used on paychecks.

Please take note that if you do a payroll liability adjustment, you must inform your employees and create a reimbursement if necessary.

Additionally, you can run the Payroll Summary report in QuickBooks Desktop to check if the amount in the payroll item and wage base is correct. Here's how:

1. Go to Reports and select Payroll Taxes and Liabilities.
2. Click the Payroll Summary Report and change the date to this calendar year.
3. Check the payroll item for each employee.
4. Verify if the amount and wage base are correct.

I'm always here to help if you have any other payroll concerns or questions. Just tag my name in the comment section and I'll get back to you as soon as I can.