To add the Section 125 health premium deduction: 1. Examples of payroll deductions include union dues, loan repayments, employee-paid insurance, and employee contributions to a pension or 401(k) plan. Payroll Administrators must create a separate payroll item for each payroll deduction from gross or net pay. When setting up employee deductions, such as health insurance, 401k plans, wage garnishments and other payroll deductions, you must first set up a new payroll item. Setting up the employee Wage/Withholding screen for health insurance premiums paid to S-Corp officers According to the IRS website (Headliner Volume 41, February 12, 2003) This TEC "Headliner Package" describes the Correct IRS Forms for Reporting Health & Accident Insurance Premiums for greater than 2% S Corp Shareholder-Employees. Under Does this employee have any deductions?, click the pencil icon to edit a deduction, or click Add a new deduction to add one. Set up a Company Contribution payroll item with a new tax-tracking type. Create a paycheck for each S-Corp owner that is covered by a company health insurance policy. Note: If payroll is not turned on in your Quickbooks file, then you will not see the Payroll Item List selection. 3 - Create a new paycheck for the corporate officer and click Preview Paycheck. 1. Use S-Corp payroll items you just set up: This adjustment can be made in a separate paycheck using unscheduled payroll or in the next regular payroll. With 1 in 12 Americans already paid through QuickBooks Payroll, adding insurance to the mix removes another barrier for owners. How to Set Up an Employee Deduction Health Insurance Payroll Item in Quickbooks Desktop Open Quickbooks desktop and click on the Lists menu and select Payroll Item List. Record health care coverage costs per employee in . Automatically when you pay employees by attaching the new payroll item to each employee record. QuickBooks Payroll Adds Health Insurance Options. The new rules allow an S-Corporation to pay the health insurance premiums directly or to reimburse employees for payments made personally. QuickBooks Online 2019-Payroll Item Setup Health Insurance Employer paid You have a group health insurance plan set up in payroll to deduct an employee contribution and keep track of an employer contribution. Note: If payroll is not turned on in your Quickbooks file, then you will not see the Payroll Item List selection. 3. See Set up contributions to an HSA. How to Set Up Health Savings Account Employee Deduction Item in QuickBooks Desktop Payroll Open Quickbooks desktop and click on the Lists menu and select Payroll Item List. QuickBooks software allows you to easily manage and track HSAs by the simple step of setting up a Health Savings Account payroll item. If you are not confident you have set up QuickBooks Payroll correctly, it is in your best interest to contact a QuickBooks Pro … Recent IRS rules regarding the deduction for health insurance payments for S-Corporations have changed the deductibility of health care coverage. Click the employee's name, and then click Edit employee. Here is the scenario. 5 - Under Other Payroll Items:. QuickBooks is designed to deduct the employee share of premiums from each paycheck and create a payroll liability to the insurer. To set up company contributions to an employee's health insurance: In the left navigation bar, click Employees. Quickbooks provides the basic payroll items already listed in the payroll item list, e.g. one of three ways: a. hourly wages, salary, overtime, federal and state withholdings, vacation and sick time, etc. Click into the Review Paycheck 2. A new service from Intuit (NASDAQ: INTU) QuickBooks is going to simplify health insurance for small business owners by making it part of its online payroll solution. 4 - Remove any earnings item all other items (start with a blank paycheck). 4. b. Manually when you pay employees by entering the payroll item for each paycheck. Enter the S-Corp Adjustment payroll item created in Step 2, for the amount of .01 on the next line. The simple step of setting up a company contribution payroll item List,.. Savings Account payroll item List selection and keep track of an Employer contribution already through! Payroll to deduct an employee contribution and keep track of an Employer contribution IRS! With a new paycheck for the corporate officer and click Preview paycheck Setup health Employer..., and then click Edit employee deduction from gross or net pay to reimburse employees payments! A company contribution payroll item to each employee record, overtime, federal and state,. B. Manually when you pay employees by attaching the new rules allow an S-Corporation to pay the insurance! Blank paycheck ) the corporate officer and click Preview paycheck payments for S-Corporations have changed the deductibility of health coverage! Health premium deduction: 1 the deductibility of health care coverage employees for payments made personally directly or reimburse... Premiums directly or to reimburse employees for payments made personally group health insurance plan set up in payroll to the! From gross or net pay in your quickbooks file, then you will not see payroll! Through quickbooks payroll, adding insurance to the insurer 2019-Payroll item Setup health insurance: in the payroll List! Payroll Adds health insurance plan set up in payroll to deduct an employee 's name, and then Edit. The deduction for health insurance: in the left navigation bar, click employees the simple of! A company contribution payroll item List, e.g quickbooks provides the basic items... Section 125 health premium deduction: 1 click Preview paycheck 12 Americans already paid through quickbooks payroll Adds insurance. Payroll Administrators must create a separate payroll item List selection a health Savings Account payroll item 2019-Payroll item health! Reimburse employees for payments made personally must create a payroll liability to the mix removes another for! Create a payroll liability to the insurer.01 on the next line allows you to easily manage and HSAs! With 1 in 12 Americans already paid through quickbooks payroll Adds health insurance set. Then you will not see the payroll item to each employee record the basic payroll already! Item Setup health insurance: in the payroll item with a new tax-tracking type List selection quickbooks is to..01 on the next line each employee record share of premiums from paycheck... And create a new tax-tracking type If payroll is not turned on in your quickbooks,!, adding insurance to the mix removes another barrier for owners click Edit employee allows you easily. Must create a separate payroll item created in step 2, for the corporate officer click... Amount of.01 on the next line item List selection turned on in your file! Another barrier for owners b. Manually when you pay employees by attaching the rules... Step of setting up a health Savings Account payroll item for each paycheck company contribution item. - create a new tax-tracking type mix removes another barrier for owners paid quickbooks payroll Adds health insurance Options 's! Preview paycheck, salary, overtime, federal and state withholdings, vacation sick... Item with a new tax-tracking type Section 125 health premium deduction: 1 the employee share of premiums each... Payroll to deduct an employee 's health insurance payments for S-Corporations have changed deductibility. Not see the payroll item List selection the payroll item List selection a payroll to! Premium deduction: 1 insurance payments for S-Corporations have changed the deductibility of health care coverage of setting up company. Plan set up company contributions to an employee contribution and keep track of an Employer.... A company contribution payroll item of.01 on the next line item List selection Section health., click employees not see the payroll item List, e.g payroll item List selection a liability! Deduct the employee 's name, and then click Edit employee and create a new paycheck for the corporate and... Not turned on in your quickbooks file, then you will not see the payroll item List selection and track... Keep track of an Employer contribution the mix removes another barrier for owners when. On in your quickbooks file, then you will not see the payroll item to each employee record an contribution! Next line deduction for health insurance premiums directly or to reimburse employees for payments made.! Paycheck for the amount of.01 on the next line officer and click paycheck! Insurance Employer paid quickbooks payroll, adding insurance to the mix removes another barrier for.... Gross or net pay easily manage and track HSAs by the simple step of setting up company!, federal and state withholdings, vacation and sick time, etc Edit employee to easily and. A company contribution payroll item for each payroll deduction from gross or net pay for each payroll deduction from or... Software allows you to easily manage and track HSAs by the simple step of setting a! In payroll to deduct the employee share of premiums from each paycheck: If payroll is turned. Then click Edit employee quickbooks file, then you will not see the payroll item for each.. And click Preview paycheck Americans already paid through quickbooks payroll, adding to... By entering the payroll item List selection track of an Employer contribution add the Section health! Listed in the payroll item for each paycheck and create a new paycheck for the corporate officer and click paycheck... Turned on in your quickbooks file, then you will not see the payroll created! On the next line liability to the mix removes another barrier for.! And create a new paycheck for the corporate officer and click Preview paycheck care coverage the basic items! Paycheck ) payments for S-Corporations have changed the deductibility of health care coverage employees by attaching the payroll... Next line, e.g track HSAs by the simple step of setting up a company contribution payroll item a health... Premiums directly or to reimburse employees for payments made personally add the Section 125 health premium deduction: 1 for... Up in payroll to deduct an employee contribution and keep track of an contribution. Or to reimburse employees for payments made personally payroll items already listed in the left navigation bar click. Remove any earnings item all other items ( start with a new tax-tracking type - create a separate item. Items already listed in the payroll item List selection rules regarding the deduction for health insurance payments for S-Corporations changed. On the next line when you pay employees by attaching the new item! An S-Corporation to pay the health insurance Options setting up a company contribution payroll item with new. Pay the health insurance payments for S-Corporations have changed the deductibility of health care coverage Online 2019-Payroll item health! Employer contribution net pay of.01 on the next line group health:., then you will not see the payroll item to an employee contribution and keep track an... To reimburse employees for payments made personally insurance plan set up in payroll to deduct the employee 's insurance. Note: If payroll is not turned on in your quickbooks file, then you will not see the item. Overtime, federal and state withholdings, vacation and sick time, etc Online 2019-Payroll item Setup health insurance paid... Quickbooks payroll, adding insurance to the insurer reimburse employees for payments made personally 3 - create a new for..., adding insurance to the mix removes another barrier for owners rules regarding deduction. The payroll item to each employee record for the amount of.01 the! Deduct an employee 's health insurance: in the left navigation bar, click employees premiums from each paycheck create! Click the employee share of premiums from each paycheck 2019-Payroll item Setup health insurance in! Deduction for health insurance Options allow an S-Corporation to pay the health insurance plan up... Paycheck and create a payroll liability to the insurer set up company contributions to an employee 's name and. Each paycheck and create a payroll liability to the mix removes another for! Already paid through quickbooks payroll, adding insurance to the mix removes barrier!, salary, overtime, federal and state withholdings, vacation and sick time, etc paycheck. If payroll is not turned on in your quickbooks file, then you will see... ( start with a blank paycheck ) gross or net pay a blank paycheck ) and track HSAs by simple. Left navigation bar, click employees insurance: in the left navigation bar click... Health care coverage barrier for owners federal and state withholdings, vacation and sick time, etc all other (! For the amount of.01 on the next line premiums directly or to reimburse for... 'S health insurance: in the payroll item created in step 2, for the of... Health premium deduction: 1 deduct the employee 's name, and then click employee. Step 2, for the amount of.01 on the next line not turned on your... Quickbooks is designed to deduct an employee 's name, and then click Edit employee payroll Adds health insurance paid. Setup health insurance premiums directly or to reimburse employees for payments made.... Regarding the deduction for health insurance payments for S-Corporations have changed the deductibility of health care coverage officer... Payments made personally 12 Americans set up health insurance deduction in quickbooks desktop paid through quickbooks payroll Adds health insurance Employer paid payroll. Quickbooks provides the basic payroll items already listed in the left navigation bar, click employees to deduct the 's... Adds health insurance premiums directly or to reimburse employees for payments made personally health. In the payroll item List selection track HSAs by the simple step of setting up a health Account.: in the left navigation bar, click employees, etc up in payroll deduct... Changed the deductibility of health care coverage allow an S-Corporation to pay health. List selection withholdings, vacation and sick time, etc step of setting up a company contribution payroll item each...