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asiaplk26
Level 2

We have employees who give us checks every month for health insurance and bank deposit shows it as an income. We pay for group health insurance every month for them.

How do we categorize the check from employees so it doesn't show as an income?
Solved
Best answer June 10, 2020

Best Answers
DivinaMercy_N
QuickBooks Team

We have employees who give us checks every month for health insurance and bank deposit shows it as an income. We pay for group health insurance every month for them.

Hi there, @asiaplk26.

 

I appreciate you adding details about your concern. To categorize the check received from your employees and to prevent it from showing as an income. You'll need to add the check as an Asset or Liability. After that zero out the Asset/Liability once you pay the insurance. 

 

To ensure your books are accurate, I suggest reaching out to an accountant. They can give recommendations on how to account the checks from your employees. You can visit this page to help find an accountant, just enter your city or location: ProAdvisor.

 

Also, you can visit our QuickBooks Resource Center for handy articles that can help you grow and manage your business. From here, you can read the latest news about QuickBooks Online, Payroll, Healthcare and benefits, etc.

 

If you have additional questions feel free to leave a reply below. I'd be glad to help you as soon as I can. Take care always.

View solution in original post

JasroV
QuickBooks Team

We have employees who give us checks every month for health insurance and bank deposit shows it as an income. We pay for group health insurance every month for them.

Yes, you can,@asiaplk26.

 

You can create a new health insurance asset category if you wish to track a specific amount separately. Once you deposited the amount as Asset or Liability, you'll want to create an expense to pay the insurance.

 

Ensure to use the same account used in the deposit in creating an expense to zero out the account. Let me guide you how to do it in your QuickBooks Online (QBO) account.

 

To create a category:

  1. Go to the Accounting menu.
  2. Select the Chart of Accounts tab.
  3. Click the New button
  4. Select an account type from the Account Type drop-down menu.
  5. Chose a Detail Type.
  6. Enter the Name.
  7. Then click Save and Close.

Here's an article you can read for more details: Add an account to your chart of accounts in QuickBooks Online.

 

Then create an expense to pay the insurance and zero out Asset or Liability account. I'd also recommend consulting with your account for the right accounts to choose from. This way, your books we can guarantee the accuracy of your books after recording this.

 

I also got you this great resource that provides a complete detail in reconciling your accounts correctly: Reconcile an account in QuickBooks Online.

 

Let me know if there's anything else you need help with. I'm only a post away from you. Have a great one and keep safe!

View solution in original post

4 Comments 4
DivinaMercy_N
QuickBooks Team

We have employees who give us checks every month for health insurance and bank deposit shows it as an income. We pay for group health insurance every month for them.

Hi there, @asiaplk26.

 

I appreciate you adding details about your concern. To categorize the check received from your employees and to prevent it from showing as an income. You'll need to add the check as an Asset or Liability. After that zero out the Asset/Liability once you pay the insurance. 

 

To ensure your books are accurate, I suggest reaching out to an accountant. They can give recommendations on how to account the checks from your employees. You can visit this page to help find an accountant, just enter your city or location: ProAdvisor.

 

Also, you can visit our QuickBooks Resource Center for handy articles that can help you grow and manage your business. From here, you can read the latest news about QuickBooks Online, Payroll, Healthcare and benefits, etc.

 

If you have additional questions feel free to leave a reply below. I'd be glad to help you as soon as I can. Take care always.

View solution in original post

asiaplk26
Level 2

We have employees who give us checks every month for health insurance and bank deposit shows it as an income. We pay for group health insurance every month for them.

Thank you so much for your response. Should I create new health insurance asset category? How do I zero it after we pay for the insurance? 

JasroV
QuickBooks Team

We have employees who give us checks every month for health insurance and bank deposit shows it as an income. We pay for group health insurance every month for them.

Yes, you can,@asiaplk26.

 

You can create a new health insurance asset category if you wish to track a specific amount separately. Once you deposited the amount as Asset or Liability, you'll want to create an expense to pay the insurance.

 

Ensure to use the same account used in the deposit in creating an expense to zero out the account. Let me guide you how to do it in your QuickBooks Online (QBO) account.

 

To create a category:

  1. Go to the Accounting menu.
  2. Select the Chart of Accounts tab.
  3. Click the New button
  4. Select an account type from the Account Type drop-down menu.
  5. Chose a Detail Type.
  6. Enter the Name.
  7. Then click Save and Close.

Here's an article you can read for more details: Add an account to your chart of accounts in QuickBooks Online.

 

Then create an expense to pay the insurance and zero out Asset or Liability account. I'd also recommend consulting with your account for the right accounts to choose from. This way, your books we can guarantee the accuracy of your books after recording this.

 

I also got you this great resource that provides a complete detail in reconciling your accounts correctly: Reconcile an account in QuickBooks Online.

 

Let me know if there's anything else you need help with. I'm only a post away from you. Have a great one and keep safe!

View solution in original post

asiaplk26
Level 2

We have employees who give us checks every month for health insurance and bank deposit shows it as an income. We pay for group health insurance every month for them.

Thank you!!! 

 

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