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Level 1

We are about to offer health benefits (I will pay 1/2 emp premium). Is there a way to set up payroll for my 1/2 & their 1/2 to be used pretax every week?

 
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Community Champion

We are about to offer health benefits (I will pay 1/2 emp premium). Is there a way to set up payroll for my 1/2 & their 1/2 to be used pretax every week?

You have two transactions going on. Only the employee pretax deduction should appear on paystub. you set it up as a pretax deduction similar to 401K contribution IF your benefit qualifies, otherwise it is an after  tax deduction like child support.

 

You will essentially pay 100% of the bill but 50% will post back from employee deduction and thus your expense is 50% of the check you cut. You can set the billing to recur along with payroll if you remit after each payroll. Otherise just have the monthlyh bill autopost or auto pay.

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Moderator

We are about to offer health benefits (I will pay 1/2 emp premium). Is there a way to set up payroll for my 1/2 & their 1/2 to be used pretax every week?

I agree with john-pero, jake-ingram.

 

I'm here to give you the steps on how to do it.

 

Take note, that when we set up this payroll item to every week, it will affect to your employees payroll schedule. This means, you'll be creating their paycheck every week.

 

When you're ready to set up their health benefits, you can follow these steps:

 

  1. From the Workers tab, select Employees.
  2. Select an employee.
  3. Go to the Does employee have any deductions? section.
  4. Click Add a new deduction.
  5. Select Deduction/contribution in the Deduction/contribution or garnishment drop-down.
  6. Select New deduction/contribution, and then select Health Insurance.
  7. Select a Type
  8. Enter a Provider name.
  9. Enter the amount on the Employee deduction and Company-paid contribution section.
  10. Select Pre-tax insurance premium.
  11. Click OK.

 

Afterward, we'll have to set up their payroll schedule:

 

  1. In the Edit employee details page, go to the How often do you pay? section.
  2. Select Add new.
  3. In the How often do you pay? drop-down, select Every Week.
  4. Fill out the required fields.
  5. Deselect the Use this schedule for employees you add after box.
  6. Click Done, and then Done.

 

You can also check this article to know what are the affected taxes and how it's reported on federal forms: Supported pay types and deductions. Go to the Health Insurance section.

 

Fee free to Reply if you still have other concerns. I'm here to help you out!

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