Health Insurance Payroll Deduction

Payroll Preparation: Determining Taxable Payroll Deductions

Health Insurance Payroll Deduction

Posted by Brien Allete on Monday, 7 October, 2019 17:58:01

You can set up paycheck deductions for employees to automatically pay into their health insurance plan. You can also set up company contributions for this benefit. Need to set up company contributions to a Health Savings Account (HSA) instead? See Set up contributions to an HSA.. To set up company contributions to an employee's health insurance:

Graduate students enrolled in the student health insurance plan are eligible for the payment option by payroll deduction provided they meet the following criteria: . Student is a full-time graduate student enrolled at Rice University for the entire academic year.; Student receives a graduate stipend of at least $5,000 from Rice University during the academic year.

It's how QuickBooks knows what you owe in payroll taxes, etc., for example. So you could also set up the health insurance deduction by clicking on the Items list and selecting Payroll Item List. In the window that opens, click the down arrow next to Payroll Item and select New. In the next window, click the button next to EZ Setup and then Next.

Employees benefit when health insurance premiums are deducted tax-free from their salaries without any of the limitations associated with the itemized deduction. Self-employed persons can deduct health insurance "above the line" on the first page of their 2018 1040s, which also eliminates the hassle and limitations of itemizing.

This may include premium payments for health insurance or money that is placed into a health savings account. In some cases, benefits used from pre-tax deductions may be subject to income taxes at either the federal or the state level.

If a payroll deduction for part of the premiums is necessary, the forms should also have a part that specifically allows you, as the employer, to make deductions from the employee's paycheck and will provide a space for the employee to sign, acknowledging that the deductions will be taken.