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Level 1

100% Employer Covered Health Insurance

The company pays 100% of employee health insurance-it is not deducted from payroll at all. How do I handle this in the chart of accounts / how to code the expense deduction in banking?


He also pays 100% into a pension fund-would I set this up the same way as well?

1 Comment 1

100% Employer Covered Health Insurance

Hello, megan5.

I can help you set up a health insurance deduction for your employee in QuickBooks Online.


You may want to check and see if the deduction is set up correctly.


Here's how:

  1. Select the employee and click the pencil icon beside Pay to edit.
  2. Go to number four and click Add new deduction.
  3. Click the drop-down arrow and select New Deduction/contribution.
  4. Choose Health Insurance.
  5. Choose Medical Insurance.
  6. Enter the insurance provider.
  7. Under Employee deduction, choose None.
  8. For Company-paid contribution, select % of gross pay then enter the percentage amount and enter the Annual maximum amount.
  9. Hit OK and Done.

You can follow these steps in setting up the pension fund.


Also, you may find this article helpful: Set up health insurance deductions and contributions.


To code the expense deduction here's how:

  1. Click the Gear icon at the upper right corner.
  2. Under Your Company, click Payroll Settings.
  3. Go to Preferences, and click Accounting Preferences.
  4. Go to Company Contribution Expense Accounts and choose I use different accounts for different groups of company contributions.
  5. Look the insurance deduction you created and choose an account.


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