When managing payroll in QuickBooks, understanding tax tracking types is essential for accurate reporting and compliance, Pam. I've got some information that can help you streamline your pre-tax deduction in QuickBooks Desktop Payroll.
In QuickBooks Desktop (QBDT), health insurance premiums paid for S-Corporation owners can be treated as a pre-tax deduction. In this case, we'll need to properly set payroll items to default to help QuickBooks automatically select the taxes that are always affected by the payroll item.
Here's How:
- Go to Lists, then Payroll Item List.
- Tap the Payroll Item dropdown, then New.
- Pick the Custom Setup, then Next.
- Select Deduction, then Next.
- Enter the name of the deduction, and select Next.
- If applicable, select the name of the plan administrator (or add it), and the account number. Then select Next.
- Choose the applicable Tax tracking type or click the Default button.
- Press the Next three times.
- Leave the Default rate and limit fields blank unless these apply to all of your employees. You’ll add the rate and limit when the item is added to the employee profile.
- Choose the Finish button.
As for your adjustment concerns, you don't have to make manual adjustments for them since we have a payroll liabilities adjustment feature to correct or update payroll records. This could involve adjusting employee wages, hours worked, tax withholdings, or benefits deductions due to errors, changes in employment status, or other factors.
- From the top menu, choose an Employees.
- In the Payroll Center, select Adjust Payroll Liabilities.
- In the Adjust Payroll window, select an Employee to correct your employee’s YTD info and the payroll item you wish to adjust, such as federal tax, state tax, or other relevant tax categories.
- Input the adjustment amount in the Amount column. You need to enter a positive amount to increase the Social Security and Medicare.
- Review the adjustments and click OK or Save to apply the changes.
Furthermore, I recommend consulting with a tax professional to ensure compliance with tax regulations and to maximize your potential tax benefits. A qualified expert can provide tailored advice based on your specific situation, helping you navigate complex tax laws and identify deductions or credits you may not be aware of.
After making adjustments, I suggest checking your liabilities are already updated in your accounts by running the payroll summary report again to verify that all information is correct.
If you have any further questions or need assistance with specific adjustments, don’t hesitate to reach out. Keeping your payroll accurate not only benefits your employees but also strengthens your overall financial management.
