Both Intuit Full Service Payroll and QuickBooks Full Service Payroll allow you to setup deduction and contributions on you employees paycheck.
Paycheck deductions and contributions
Paycheck deductions (besides taxes) can be applied toward retirement plans, insurance plans, and Health Savings Accounts (HSAs). Your company can also make paycheck contributions to employee insurance and retirement plans.
The difference between a contribution and a deduction
A contribution is company-paid, whereas a deduction is employee-paid.
You can assign deductions and contributions that have been set up for your company, like health insurance and retirement plans, to an employee profile.
QuickBooks Online Payroll Full Service
- In the left navigation bar, Select Workers.
- Select Employees.
- Select the employee's name.
- Select the pencil icon next to Pay.
Add a new deduction or contribution.
- Select the pencil icon under Does this employee have any deductions? or Select Add a new deduction.
- Select the Deduction/contribution drop-down arrow, and then select New deduction/contribution.
- Select the Deduction/contribution type drop-down arrow, and select the type:
- Health Insurance
- Retirement Plans
- Flexible Spending Accounts
- HSA Plans
- Other deductions
- Answer the relevant questions to set up the employee deduction or your company's contribution (if any) for each type.
Edit an existing deduction or contribution.
- Under Does this employee have any deductions?, Select the pencil icon next to the deduction you want to edit.
- Make any necessary changes.
- Select OK, and then Select Done.
Intuit Full Service Payroll
- Select the Employees tab.
- Select the employee's name in the Employees list.
- Select Edit in the Deduction and contributions section.
- Select Add new deduction or contribution.
- Select an item from the Name list in the Assign a new deduction or contribution window.
- Enter the requested info for the type of deduction or contribution selected.
- Select Save. The info is stored in the employee's profile and displayed on the Deductions and contributions page.
Select a taxable or pretax deduction
Select the option that applies to this insurance plan, as defined in your plan documents. If you don't have your plan documents, contact your plan administrator.
If you select a different option than in your plan documents, you might be subject to penalties.
What do the options mean?
- Taxable insurance premium — select this if the premiums will be taken out of your employee's net pay (after taxes). Taxable employee contributions are not reported on Form W-2.
- Pre-tax insurance premium — select this if the premiums will be taken out of your employee's gross pay (before taxes). On Form W-2, employee pretax contributions (plus company contributions, if there are any) are reported in Box 12, but excluded from federal wages and most state wages. If the employee's pretax contributions are taxable at the state or local level, we include the amount in taxable wages.