Health insurance deduction set up

RoseJillB · ‎March 27, 2023

I can provide you with the easiest way of changing your payroll posting account in QuickBooks Online (QBO), @Marks999.

If you prefer to change the account linked to your payroll, then, you can follow the steps below. But before you proceed, you may want to consult with your professional advisor to guide you with selecting the correct account and provide you with the best choices:

Click the Gear icon at the top and select Payroll Settings.
Hit the Accounting section.
In the Accounting Preferences window, click the pencil icon to edit.
Go to the Bank Account section and choose the correct account in the drop-down menu.
Lastly, click OK and Done.

Furthermore, you can also pull up a variety of payroll reports in QuickBooks. This will give you a closer look at your employee's total wages, deductions, and tax information in a certain period. For the complete list of available payroll reports and how to pull them up, kindly refer to this article: Run payroll reports.

Feel free to add a comment if you have more questions about payroll. The Community always has your back. Have a good one!

Kelly at SLO · ‎April 06, 2023

I followed the steps to add a PreTax Employer Benefit - Health Insurance in QuickBooks Desktop. The amount taken out is a fixed rate each month and the employee Federal Withholding, SS, Medicare still increased. What am I missing?

JaeAnnC · ‎April 06, 2023

I appreciate you for joining in on this thread, Kelly.

Let me share how QuickBooks Desktop (QBDT) Payroll calculates taxes, so you'll understand the taxes reported on your employees' paychecks.

QBDT utilizes the percentage method to calculate income taxes. Instead of per transaction, it calculates your employees' payroll taxes on a year-to-date amount.

Income taxes are determined by your employee's W-4 info, such as:

The filing status of your employees.
Extra withholding amount or the number of allowances in the employee setup.
Pay frequency.
Gross wage in a given pay period.

For further details, please visit this link: Understand how your payroll taxes are calculated.

If you're encountering incorrect taxes withheld, you can refer to this article for the troubleshooting steps: QuickBooks Desktop calculates wages and/or payroll taxes incorrectly.

Let me know if you have any clarifications about payroll taxes. I'll be with you to assist you further. Take care, and have a good one!

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