Hi there, @Sanford Construction.
I can provide details about reimbursing paid life insurance in QuickBooks Desktop (QBDT).
The cost of insurance is considered part of the employee's total compensation, even if the employer pays the premium. When you set up the item, we recommend using the EZ setup. The tool will select the payroll item taxation for you. For more information, please check this reference on how to set up S-corporation medical payroll items.
Once done creating the item or entering the data, you'll have to create another item to reimburse the employee. Here's how:
- Click Lists, then go to Payroll Item List.
- Click Payroll Item, then select New.
- Select Custom Setup, then click Next.
- Select Addition, then click Next.
- Enter a desired name, then click Next.
- Select an expense account, then click Next.
- Select the Tax tracking type, then click Next.
- Click Next again, then click Finish.
When you create a paycheck, add the item in the Other Payroll Item section. Or, you can add the item to the employee's profile, so it will automatically appear when creating the transaction.
I'll also add this article that tackles knowing how to report health insurance you offer or reimburse in QuickBooks: Report employer health insurance on W-2s.
For more tips and other resources, I recommend visiting our website: Self-help articles.
Know that you can always get back to me if you have additional questions about this or anything else. I'm more than happy to answer them. Stay safe.
