Table of Contents
QuickBooks (QB) has a number of features available for your business. These are things that you can use to make your company run more smoothly and in this article, we will talk about choosing benefits with QuickBooks Payroll software.
The “how to record employee benefits in quickbooks” is a question that has come up many times before. In this blog, I will teach you how to choose and set up benefits in QuickBooks Payroll.
Benefits are an essential element of an employee’s compensation package—and they’re also necessary for staying in compliance with the law. QuickBooks Payroll keeps track of compliance concerns in all 50 states and may assist you in obtaining health insurance and workers’ compensation benefits. You may also incorporate your benefits into the payroll if you deal with an outside broker. We’ll go through how to set up benefits in QuickBooks Payroll Online, as well as how to decide which perks to provide.
This course is based on the QuickBooks Online Elite Payroll package, which is the most expensive. While certain features may be unavailable on different plans, the steps for the most popular ones should be the same. QuickBooks Payroll is a comprehensive payroll solution that includes tax filing and payment, as well as health insurance. Advanced plans include features such as time monitoring, workers’ compensation, HR support, and more. To determine the best plan for you, go to QuickBooks Payroll.
Pay attention to QuickBooks Payroll.
In QuickBooks Payroll, Selecting Health Insurance Benefits
Within the QuickBooks Payroll system, you may choose whatever health insurance benefits you wish to provide your workers. There are a number of national insurance companies to select from, all of which provide a choice of plan options to meet the demands of your workers. In the case that you wish to make contributions to cover part of the cost of your workers’ benefits, we’ll also teach you how to set up fringe benefits using QuickBooks.
Before you begin, double-check that all of your workers have been put into the system. QuickBooks makes advantage of this data to help you select the best plan for you. Also, using the Reports area, produce and download a paycheck summary for the previous month. You’ll need it for the application, so save it as a PDF.
At any plan level, purchasing or connecting health insurance to QuickBooks Payroll is simple.
Follow the steps below to get started:
- On the side menu of the QuickBooks dashboard, choose Payroll.
- Go to the “Benefits” section of the menu.
- Select Find My Plan from the drop-down menu. QuickBooks then selects the best options for you based on your employee data.
There are various methods for narrowing down options in order to get the optimal strategy for your team.
4. Narrow down your options. A list of plans is provided by QuickBooks. If you have a lot of options, utilize the filters at the top to limit down your options. Keep in mind the different sorts of personnel you have, particularly if you have a significant number of people from a single group (high schoolers vs seniors vs new parents). Certain programs are better suited to certain populations.
5. Compare the most advantageous programs. To make a side-by-side comparison, click on the plans that interest you. If it’s more convenient for you, you may also print the comparisons.
6. For the plan you prefer, click Start Application. It takes 15–20 minutes to complete the operation.
Each supplier offers a variety of plans at various prices. Examine them to see how their coverage choices stack up against the cost.
To complete your quotation, choose a start date for coverage and decide how employee contributions should be computed.
7. If wanted, add vision and dental coverage. Complementary plans are generated by the program.
8. Pick a start date for your coverage.
9. Determine how contributions are calculated by determining whether to divide payments by a fixed cash amount or a percentage of the total premium. If you wish to set up fringe benefits, the program will show you how much your employee will pay, as well as how much your firm will spend.
10. Determine whether or not part-time workers or domestic partners should be covered. Once you achieve the equivalent of 50 full-time workers, you’re obligated by law to provide health insurance coverage to eligible employees (FTE). Part-time workers, on the other hand, are not required to be covered unless you want to do so.
11. Establish new employee waiting periods. This is a fantastic concept for firms with high turnover, such as eateries, or for organizations that need new recruits to complete a probationary term.
12. Include information about the employees. After that, employees will be invited to apply for insurance. The whole application may be forwarded to the insurance provider after everyone has completed their paperwork.
13. Make a document upload. Different insurance providers have different documentation requirements. The program contains links to download the files. It’s possible that you’ll need to provide the most current payroll log as well. This may be found in QuickBooks’ Reports section.
Choosing 401(k) or Retirement Benefits in QuickBooks Payroll
QuickBooks clients may also take advantage of retirement options. It collaborates with Guideline to provide a variety of 401(k) plans.
Before you begin, double-check that you have entered all of your workers into the system. QuickBooks makes advantage of this data to help you select the best plan for you. Also, using the Reports area, produce and download a paycheck summary for the previous month. Make a PDF of it.
1. Select Payroll from the side menu in QuickBooks.
2. Select “Benefits” from the drop-down menu.
3. In the 401(k) plans box, click Find My Plan. You will be sent to the Guideline website by QuickBooks. There are three options available to you. On the website, there’s also a cost calculator.
4. Select the plan you want to apply for and start the application process. It will inquire as to who is in charge of payroll. Select QuickBooks from the drop-down menu. To complete the application, an agent will contact you.
If you want to use a different provider or kind of insurance, you’ll have to purchase it yourself and manually enter it into payroll. That will be discussed later.
Creating Additional Paid Benefits
Pet insurance, child care, and mileage are examples of paid benefits that must be manually added. Regardless of the QuickBooks Payroll plan you have, the procedure is the same.
Employee Benefits That Require Contributions
Enter it under Add Deductions if it’s a benefit that the employee pays a portion of, such as child care or other insurance.
1. From the side menu, choose Payroll. After that, choose Employee.
2. Go to Does employee have any deductions and scroll down.
3. Select Add a new deduction from the drop-down menu. Deductions that have already been made are noted. Click New Deduction/Contribution if you can’t locate the one you’re searching for.
4. Select the new deduction from the dropdown menu. If it isn’t already there, go to Other deductions and add it.
5. Keep in mind that you have a dropdown menu of options. If the option you’re searching for isn’t shown, go to Other after-tax deductions and give it a name.
Give a new deduction a name that the employee will recognize. This makes it easier for the employee to recognize the provider’s name at a glance. For example, don’t expect your workers to recall the name of their 401(k) plan’s bank (k). A short message might help to clear things up.
6. Some basic benefits need many areas to be completed, such as the amount withdrawn every paycheck in terms of cash amount or percentage of salary. You may need to complete the computations yourself if the sum is a fixed monetary amount.
7. Determine if the benefit is taxed. If not, go with pre-tax. The funds will be taken out of tax computations. If you’re unsure, get advice from the plan administrator or QuickBooks.
Some of these data may automatically fill for you if you connect your insurances with QuickBooks Payroll.
Each pay period, you may choose how much your organization will contribute to employee benefit programs. This might be expressed as a percentage of gross salary or as a fixed amount.
Additional Compensation
If the benefit you provide involves Additional Compensation, like bonuses or commissions, housing, or per diem, you can find these in Add Pay Types.
Note: Group Term Life Insurance is included under Additional Compensation Types.
1. From the side menu, choose Payroll. After that, choose Employee.
2. Select Add Pay Types from the drop-down menu.
3. Select Common Pay Types from the drop-down menu.
4. Select a pay type from the drop-down menu, or build your own.
You can add Additional Compensation options, if the one you’re looking for isn’t showing.
5. Save the file.
Once you’ve configured them for one employee, you may use them for all other workers.
COVID-19 Advantages
If you provide sick leave to workers who have COVID-19, you may choose to pay them and deduct the cost from your payroll tax payment. To use this in QuickBooks Payroll, go to the Add Pay Types tab and choose the Families First Coronavirus Response Act. Add Pay Types also includes the CARES Act, which offered benefits to assist firms retain workers during the epidemic.
To ensure you have adequate assistance to obtain your tax credits, you may mark eligible monies you pay out under the CARES Act and the FFCRA.
Using QuickBooks Payroll to Set Up Time Off Benefits
PTO (paid time off) and unpaid time off are both significant factors to consider. There are no rigorous PTO laws in place by the federal government. Your state, on the other hand, might make you a more attractive employer. PTO is simple to monitor with QuickBooks Payroll, and workers may request it via their portal when they need it.
To set up your company’s PTO benefits, follow these four steps:
1. From the side menu, choose Payroll. After that, choose Employee.
2. Select Add Pay Types from the drop-down menu.
3. In the popup box, scroll down to Time Off Pay Policies and select Add New Policy.
4. Fill in the accrual, earned-hours, and maximum-hours-per-day regulations. Save the file.
To assist automate your PTO calculations and accruals, you may add time off policies.
Please keep in mind that after you’ve created a policy, you may use the dropdown menu to add it to the profiles of other workers.
Benefits Configuration in QuickBooks Desktop Payroll
The choices in QuickBooks Desktop change from those in the online edition, but the processes are the same. Benefits may be set up in two ways: EZ Setup, which uses a wizard to guide you through the process, and Custom Setup, which has more stages but more possibilities.
The website’s help center has step-by-step instructions—indeed, it contains more than the online version.
Conclusion
Employee benefits are critical not just for ensuring legal compliance, but also for recruiting and retaining top talent. QuickBooks Payroll provides health and other benefits, as well as the ability to manage and monitor them. This lesson covers the fundamentals of selecting and configuring benefits in QuickBooks Payroll. To learn more, get a free trial of QuickBooks Payroll and try it out for yourself.
Pay attention to QuickBooks Payroll.
In order to record employer paid health insurance, you need to choose and set up benefits in QuickBooks payroll. You can do this by following these steps:
1. Choose the type of benefit from the list of available options.
2. Enter the cost for each employee who is eligible for that particular benefit.
3. Check off the employees who are eligible for that particular benefit and click “Update.”
4. If you want to exclude an employee from a certain benefit, click on their name and then click “Exclude.”
5. Click “Save” when you’re done entering your information. Reference: how to record employer paid health insurance.
Related Tags
- how to set up health insurance deduction in quickbooks desktop
- how to set up a payroll deduction in quickbooks desktop
- set up company contributions in quickbooks desktop
- how to enter insurance premium in quickbooks
- quickbooks benefits plans
