For a S-Corp the Profit Loss Report double counts Health Insurance Expense

Thanks for the reply but those 2 accounts are part of QB Online Payroll process. 

S-Corp Owners Health Insurance can only be mapped to the Payroll Liabilities sub-accounts.

Since the company pays the full premium it shows in Company Contribution Account and I think QB payroll adds it to Wages account because it is taxed as compensation.

QB Online Payroll - Any thoughts on this?

Hi there, @TomR3. We appreciate you for asking about our view toward S-Corp.

With this in mind, let me further discuss S-Corp being double counted in Profit & Loss reports.

I agree with what has been explained above. Adding to that, QuickBooks Online Payroll (QBOP) will make a posting if you already add an S-Corp pay type and a company contribution that's a deduction/contribution item.

Also, you'll need to review what item is being set up in the payroll and if it's valid or not. If not, there's a need to pull up the Payroll Detail Report and review what paycheck has that particular item that needs to be deleted or recreated.

To run this report, here's how:

1. Go to Reports.
2. In the search box, enter Payroll Detail. A list of reports will show about payroll, select it.
3. Review the reports and check each pay date.

And if the paycheck can't be deleted or recreated, then you can void it by following the steps below:

1. Go to Payroll, then Employees.
2. Select the Paycheck list.
3. Select the paycheck(s) you'd like to delete or void, then select Delete or Void.
4. Select Yes.

Feel free to read this article for more details: Delete or void employee paychecks.

If you want to learn how to run, print, and customize payroll reports, you can read this article: Run payroll reports.

For additional queries about managing your S-corp or anything related to payroll, never hesitate to route back yourself here. Take care and have a good day!

Just following up again here on how to handle the double counting in PL Report.

Payroll Expenses:

Under Company Contributions:

Payroll Expenses:Company Contributions:Health Insurance - $750

(which correct as the company pays for all the health insurance)

And under WagesPayroll Expenses:Wages - [S-Corp Health Insurance - Company Contribution] - $750

(which correct as this benefit is taxed for S-Corp owners)

So the $750 is double counted under Payroll expenses.

Hi Tom,

We want to help you with your concern about the payroll expenses in the Profit and Loss report. However, we need more details to provide the correct resolution and get this sorted out promptly.

Can you share screenshots of the financial report and the details on both payroll expense accounts? This way, we can provide a thorough explanation.

In the meantime, you can check this article for additional guidance on customizing reports in QuickBooks: 

Please know that you're always welcome to post questions in this space. Have a great day ahead.

Example attached.

I appreciate you getting back with a visual reference, TomR3. Let me provide more clarification about the posting of your payroll transactions.

The system calculates your contributions depending on their configuration. The contributions usually post under the company and employee expenses. When you see an unusual tagging of your items, you may have to revisit your employee's profile and go through each pay type and contributions/deductions. 

1. Sign in to your QuickBooks Online (QBO) account.
2. Click on Payroll at the left pane, then Employees.
3. Look for the employee's name, then run through the items under Deductions & Contributions and Pay types. 
4. Make sure that the correct types and contributions are selected.

For more reference, you may run through the resources from these links:

• Set up and manage company contributions
• Add or change pay types

If verified that the expenses/contributions aren't valid and multiple paychecks are affected, you may have to contact our QuickBooks Payroll Support for payroll corrections. To start:

1. Click on Contact Us from the Help menu.
2. Enter your concern, then select Let's Talk.
3. Choose a way to connect with a live representative.

For your convenience, you can connect with them during their business hours.

Once everything is in place, you're now ready to process your employees' pay accordingly. Moreover, you may have to pay and file your taxes on time.

Please let me know if you have follow-up questions while tracking your payroll entries in our system. I'm just a few clicks away to help you again. Have a good one!

The payroll configuration is correct for both employees as they are both "S-Corp Owners Health Insurance"

The payroll configuration is correct for both employees as we are S-Corp Owners and we have set the pay type "S-Corp Owners Health Insurance".

Hi TomR3,

I'm not sure if you ever had your question clearly answered, but here is my understanding.

You should NOT have an expense for Company Contributions for the S Corp Owners health insurance.

You should only have the expense for wages.

On Payroll: we debit wage expense, credit the liability account (for example, Health Insurance Payable - whatever it is you use.)

When health insurance payment is made, you debit that same liability account to clear it and credit the bank account.

I hope that helps!