AFLAC pre-tax deductions

Hi!

I had the same dilema since 2008 was the first year we started Aflac. I had set up a payroll item for Aflac - pretax and another one for Aflac - taxable (since there are different criteria for different Aflac Products). Even though QB somewhat allows you to create that type of a deduction for pre-tax (payroll item with tax tracking "Premium Only/125" ) from gross, but the problem is it will mess up the W-2 which I just found out. It does not show the YTD pre-tax deduction in box 14 as it should, plus it is deducting from Federal Withholding correctly (the YTD pre-tax), but incorrectly on Medicare, Social Security (it deducts the YTD taxable amounts instead of the YTD Pre-Tax amounts) and for the state it actually deducts both YTD pre-tax and taxable which the state taxes should have been left untouched. I had to go to all the employees with Aflac W-2s to override and correct them. This is scary because right now I'm not sure if it isn't creating a problem behind the scenes in QB since it's showing it wron on the W-2s.

I guess this means the W3's are wrong too?

How can we set up a Pre-tax deduction/After-tax deduction without having it mess up all other taxes including withholding, W-2's, etc.?

1 - you pretax all the plans, assuming you have a sect 125, except life and disability. You could pretax disability, but them the benefits become taxable to the company and employee - don't do it.

2 - regarding 2 different pays - you can have a master account with 2 accounts under it based on your payroll or you can multiply by 52 and divid by 12. With AFLAC, you are billed in arrears so you've always collected the money prior to sending it in. If anything, you've over collected from the semi-monthly employee (better done the 1st way).

3 - make sure you do your billing on-line, it is much faster to make changes to the bill.

4 - both federal and fica taxes are not paid on pretax plans (until you've met the max deduction for fica - most states taxes are also not payable on the plans - check your state to see if they acknowlege a section 125 for medical premium - NJ does not I know but PA & DE do)