QuickBooks is the best accounting software for small businessmen. It has many features deduction or contribution is the part of these features. Paycheck deductions can be applied towards retirement plans, insurance plans, and health savings accounts. Your company can also contribute paychecks to employee insurance and retirement plans. If want to try to add and edit deduction and contribution in QuickBooks and you unsuccessful to add or edit. Don’t worry, this blog helps you to add or edit a new deduction or contribution in QuickBooks. First, I will tell you the difference between deduction and contribution.
Difference between Deduction and Contribution
A contribution is company-paid, whereas a deduction is an employee paid.
You can deduct and contribute to your company, such as health insurance and retirement plans, for an employee profile.
Add and edit Deduction and Contribution in Quickbooks online payroll full service
- Go to the navigation bar, choose Workers.
- Select employees.
- Then select Employee Name.
- Select the add icon next to Pay.
- Click on the Add option to create a new deduction or contribution.
- Select in the edit Icon Does this employee have any deductions? Or select Add a new deduction.
- Choose the Deduction / Contribution drop-down arrow, and then choose New Deduction / Contribution.
- Select the deduction/contribution type drop-down arrow, and choose the type:
- health insurance
- retirement plans
- Flexible expenditure account
- HSA Schemes
- Other deductions
- Answer relevant questions to establish employee deductions or contributions of your company (if any) for each type.
- Select OK, and then select Done
The same process to edit. When you select the add icon next to Pay. Instead, you can select the edit icon at the next pay
Add or edit in Intuit Full payroll Service
- Choose the Employees tab.
- Select the employee’s name on the employee list.
- Select Edit in the Deduction and Contribution section.
- Choose to Add a new deduction or contribution.
- Select an item from the Name list in the Specify new deduction or contribution window.
- Enter the requested information for the type of deduction or contribution selected.
- Select Save the information is stored in the employee’s profile and displayed on the deductions and contributions page.
Select a taxable or pretax deduction
Choose the option that applies to this plan, as defined in your plan documents. If you do not have your plan documents, contact your plan administrator.
If you choose a different option than your plan documents, you may be subject to penalties.
Taxable Insurance Premium – Select this if the premium will be taken from your employee’s net salary (after taxes). Taxable employee contributions are not published on Form W-2.
Pre-tax insurance premium – Choose whether the premium will be taken out of your employee’s gross salary (before taxes). In Form W-2, employee pretax contributions (plus company contributions, if any) are reported in Box 12 but are excluded from federal wages and most state wages. If the employee’s pretend contributions are taxable at the state or local level, we include the amount in the taxable wages.
You can find in this blog how to add and edit deduction and contribution in QuickBooks. I hope my all information is useful for all QuickBooks users. If you want information about features QuickBooks and our support services contact us at our QuickBooks Payroll Support phone number +1-844-442-0333.