Quickbooks pros - Help

[oceanlovin'ea]

How do I add the health insurance to the Line 1 wages on the W-2 and not to Line 3 or 5?

This is a s corp. The health insurance the company paid has to be added to W-2 wages, but I have tried everything and can't get it to add to just Line 1 wages. Well, I guess I haven't tried everything.....just everything I know.

Thanks for the help.

Linda F

[Acownt4it]

are you trying to print the W-2 in QuickBooks or is this an initial setup for payroll?

If you are setting up the payroll:

[sandysea]

Put it as an Payroll item "addition"

You can set up a new p/r item called health insurance and arrange the item so it only is taxable for federal and not fica or medicare. You will have to then set up the individual to have this item on his/her check. If it is now for printing the W-2 and you have not already included it in a p/r check, then you will need to write a p/r check with only the one p/r item and let it go through posting, etc. Of course, the 941 will have to reflect it as well....

[outwest]

In 2005 and later quickbooks..

you can setup an addition type payroll item. When you get to the screen that says tax tracking type, go the the bottom of the list and you will see the scorp pd med premium. choose this and finish the setup. Use health insurance rather than payroll expense for the expense account.

Next either divide through the year for 2007 or a dummy 12/31 check for 2006 to get to the w2. May need to amend the 4th qtr 941.

[oceanlovin'ea]

sandysea & outwest

Ok, I set up an additiona payroll item, scorp med, and changd the expense account. But when I go through the process of creating paycheck in QB, it won't do it because it says it can't process a check without an amount.

The amount of the health insurance doesn't carry forward to the last section where it has the payroll amount less taxes for net check.

I am using QB Pro 2005.

What am I not doing right?

Linda F

[outwest]

Put in a penny of gross pay..

for a net check of a penny ...

Fractions of cents on the 941...

[geekgirldany]

Lynda if you haven't already done it. This is how I always fix it:

Okay you've got your payroll item setup for Shareholder Health Insurance. Go to Employees, Payroll Liabilities, Adjust Payroll Liabilities. Select the employee you want this to apply to, make sure the effective date is 12/31/2006, enter the payroll item and the amount of the health insurance. Then there should be a button that says "accounts to affected". Click on that and make sure you click on don't affect accounts. Go ahead and save. You will have to do this for each employee/shareholder. It should show up on the W-2 now.

What this does is leave the health insurance in the existing expense account and does Not add the amount you entered in the Liabilities adjustment to either a expense or liability account. So it will not be added twice.