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  • Aug 28, 2007, 06:18 AM
    sparkles17
    Employee Benefits
    I need to set up medical benefits for 2 employees. I need to deduct $ from there pay to contribute to te health plan. How do I handle in the quickbooks system. Please give a step by step set up for the accounts and what should be debited and credited. My uncles acct is ill and I can't get an answer and need to set this up now. Thankx for all help given
  • Aug 29, 2007, 08:28 AM
    QBalance Linda
    The following answer demonstrates how to set up a health insurance deduction on a paycheck generated using QuickBooks do-it-yourself, enhanced, or assisted payroll:

    Go to the List menu >
    Select pr item list >
    Custom Set-up >
    Choose Deduction >
    Enter name for deduction such as "Health insurance Deduction" >
    Skip the name of the agency and the number.
    For the liabilty account, scroll down and choose
    Insurance:health but then add a colon : and type
    Employee contribution to Health. Click Next >

    Add this account to your chart of accounts >

    For Tax tracking type choose NONE if it is not a Section 125 health plan,
    If it is a section 125 heath plan, scroll to the bottom of the list and choose
    "premium only/125".

    For more information about a section 125 plan call your insurance agent. >

    Skip the next screen for Taxes (Quickbooks will handle this for you)>

    Under the Calculate based on Qty screen choose neither >

    Calculate the deduction on Net pay >

    In the final screen choose finish.

    Next you will need to add this item to the employee's record.
    Go to the employee list / or employee center depending on your version
    Of QuickBooks>
    Select an employee name and right click and choose edit >
    In the Change Tabs field select "payroll and compensation" info >
    In the Additions, Dedeductions box, add the "Health insurance Deduction"
    Item and enter the amount per pay period you would like to withhold (you will
    Not need to enter a limit) >
    Select OK

    You are now ready to prepare payroll. This item should automatically appear on the employees paychecks.

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