Refund employee health insurance deduction

This is how it looks in the payroll liability tab.

I'm here to help you refund an employee's health deduction, lilavalv.

You can create a payroll adjustment, then submit a reimbursement check to refund your employee. 

I'll guide you through how to create a reimbursement payroll item to track and account for your employee's health insurance deductions. Then, assign the item to your employee's record.

Here's how: 

1. Go to the List menu.
2. Choose the Payroll Item List.
3. Click the Payroll Item button, and choose New.
4. Select Custom Setup, and click Next.
5. Pick Addition from the item type list and click Next.
6. Choose an expense account. This allows you to set up an account to track the money you owe the employee for reimbursements.
7. Set Tax Tracking to None and click Next. 
8. Select the option to Calculate on Net Pay and click Next.
9.  Enter the default rate and click Next.

Once completed, you can assign the reimbursement payroll item to the employee's record under the earnings column.

1. Click the Employees menu.
2. Choose the Employee Center.
3. Double-click on the Employee's information.
4. Pick the Payroll Info tab.
5. Click the drop-down menu for Additions, Deductions and Company Contributions. 
6. Select the item from the list that you wish to add to your employee's paycheck.

Please read out these articles for additional details:

• Create a non-taxable reimbursement payroll item
• Refund an employee for a deduction that was overwithheld.

For future reference, you can use this article that will serve as a guide to help prepare your tax forms: Year-end checklist for QuickBooks Desktop Payroll.

You can post additional info on how it goes. I'll be right here if you need more help handling refunds for your employees.

Can i do this, even though i have already created a paycheck for him using the same pre tax deduction line item and check is already cashed? 

Hello, @lilavalv.

I can share additional information about refunding the employee's health deduction.

Yes, you can follow the steps outlined above by GlinetteC on how to refund an employee's health deduction even if the check has already been cashed.

Here's more information on how you can pay your employee back for an incorrect paycheck deduction if you overwithheld health insurance: Refund your employee for a deduction that was overwithheld.

For detailed guidance on how to find payroll discrepancies and to make liability adjustments, check out this article: Adjust payroll liabilities in QuickBooks Desktop Payroll. 

From here, you can run the payroll summary report and payroll liability balances report to check if everything and the amounts to be paid are correct.

Let me know in the Reply section if you need further questions about payroll. I'm always here to help. Have a great rest of the day!

I used this Refund your employee for a deduction that was overwithheld. to reimburse him. I entered the same payroll item which is pretax as a positive to offset the balance but now i can't remove it from my payroll liability tab or get the payroll liability balance to zero out. 

Hey, @lilavalv. 

I appreciate you coming back with another concern you have about refunding your employee's health insurance deduction. 

If none of the steps above are helping and the issue is persisting, I recommend contacting our Customer Support Team to review this further. Here's how: 

1. Go to the Help menu. 
2. Press the QuickBooks Desktop Help option. 
3. Tap the Contact Us hyperlink/button.
4. Enter your question and hit Let's talk. 
5. Scroll down and pick to Get a callback. 

It's that easy! 

Keep us updated on how it goes. I'm only a post away if you need me again. Best wishes!