Classes for health insurance

Hi there, KevinElo.

Allow me to share some information about health insurance and how it is set up in QuickBooks Online.

You'll need to set up a deduction or contribution item for each employee to track and tax their health insurance appropriately.

Like this:

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Deductions & contributions, hit Start or Edit.
4. Click on + Add Deduction/contribution.
5. Choose from the following:
   - Deduction/contribution or garnishment: Deduction/contribution
   - Deduction/contribution type: Health Insurance
   - Type: Medical Insurance
6. Enter the name of the contribution or plan provider.
7. Enter the provider and the amounts for Employee and Company-paid fields. You may select Flat amount or Percentage of gross pay.
8. If you want to specify an annual maximum amount for company contributions, enter the amount in the Annual Max field.
9. Once done, click Save.

I've added this article to learn more about the set up and how to manage these payroll items: Set up and manage payroll items for your insurance benefit plan.

You can also use this link to learn how to run payroll reports in QuickBooks Online Payroll, which will provide you with some useful information about your health insurance.

Let me know if you require any additional assistance or have other payroll concerns. Have a wonderful day!

Thank you for that answer!  I can run a employee deduction report, but I can't seem to break out the deductions by class.  We have two separate clinics, and I'd like to see what the insurance expenses are at each clinic.  Is there any way to do this?  Thanks!

Welcome back, Kevin.

Yes, it's possible. You can break down expenses for each clinic using the Class tracking feature. All you need to do is to set it up first. I'll show you how.

Step 1: Assign a class to your employees.

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Employment details, click Edit.
4. Add your employee’s class in the Workers' comp class field.
5. Once done, hit Save.

Step 2: Set up your accounting preference to track payroll expenses by class.

1. Go to Settings ⚙, then Payroll settings.
2. From Accounting, select Edit ✎.
3. Next to Class Tracking, Edit ✎.
4. Choose how you want to track classes.
5. Select or enter the account name exactly as it appears in your chart of accounts for each employee.
6. Once done, hit Continue, then Done.

Please refer to this article for more details: Set up and track your payroll expenses by class.

In addition, I've added this link to assist you in managing your payroll taxes and form filings in the future: Manage automatic tax payments and form filings.

You can reply to this post if you have further questions about managing your employees and their payroll. I'll be around to help you.