You can easily setup paycheck deductions to streamline the health insurance plan payments for your employees. You won’t have to look into payments once you set up the paycheck deductions.
Follow these steps to set up company contributions in the health insurance:
- Click on Employees.
- Select Employees name for whom you want to make a contribution, and then edit employee information.
- Go to Deduction/contribution and click on New Deduction/contribution in the drop-down menu.
- In the Deduction/Contribution drop-down menu, look for Health Insurance and click on that.
- You will be getting three options on your screen: Medical Insurance, Vision Insurance, and Dental Insurance.
- In the next step, you have to provide a label in the form of a name.
- Enter a description of the Health Insurance Plan.
- Choose an amount in Dollars or percentage of the gross pay for the amount per day.
- Choose an amount in Dollars or percentage of the gross pay for this employee. This amount can be changed when you create paychecks for the employee.
- Moreover, the user can set up a high cap for the annual amount of deduction an employee can choose and the company contributes.
Different Health Insurance Plans and Premiums
- Taxable insurance premium: Choose Taxable insurance premium if the premium amount should be deducted from the net pay of your employee’s. This type of employee contributions is not reported in the W-2 forms.
- Pre-tax insurance premium: This option should be selected if you wish that the premium amount should be deducted from the gross pay (before taxes) of the employee. You can check the employee pretax contributions on the W-2 form in the box 12. This won’t be included in State or Federal Wages.
Note: If the pretax contribution is taxable at local or state level, the amount will be included in taxable wages.
After you are done with selecting the appropriate option for the premium amount, click on the OK option.
You do not have to repeat the same process for each employee. Once you set up a deduction or contribution for one employee, it can be applied to all the other employees as well.
You can easily setup the contributions for the health insurance premiums by following the above-given steps. However, if you are facing any problem or have any question regarding QuickBooks you can dial the toll-free QuickBooks Payroll Support Phone Number at +1888-557-5018 and talk to one of our QuickBooks Experts.