How to Set up Fringe Benefits in QuickBooks?

Fringe benefits in Quickbooks

Learn how to set up fringe benefits to paychecks in QuickBooks Online Payroll. Many employers offer fringe benefits to employees for a variety of reasons. We explain what fringe benefits in QuickBooks and how to add them to a paycheck, and more.

What is a fringe benefit?

A fringe benefits is a form of employee reimbursement that has unique payroll reporting requirements. Fringe benefits variety from: cash, like clergy housing, allowance, or non-cash benefits such as permitting an employee private use of a enterprise car, group time period life insurance or S Corp health benefits. The table below suggests the types of blessings that we support.

Cash Fringe Benefits

Increase Net Pay

Other information

Allowance

Yes

Taxes as regular wages

Non-taxable Per Diem

Yes

Reported on form W-2 Box 12 Code L.
Clergy Housing (Cash)

Yes

Reported on Form W-2 Box 14
Clergy Housing (in-Kind)

No

Reported on Form W-2 Box 14
Group Term Life Insurance (GTLI)

No

No        Taxable. Added to wages reported on form W-2. Appears in box 12 Code C
Personal User of Company Car (PUCC)

No

No        Taxed as regular wages. Reported on form W-2 box 14
S-Corp Owners Health Insurance

No

Subject to federal and state withholding (income) taxes. Reported on form W-2 box 14
Company HSA Contribution

No

axable in some states, Reported on from W-2 box 12 code W

 

 

Add Fringe Benefits to your pay types:

Before adding or reporting a fringe benefit on a paycheck, you need to enable the fringe benefit inside the employee profile.

Choose your product to see the steps to enable the fringe benefit item.

Intuit Online Payroll and Intuit Full Service Payroll-

  • Select the Employees tab.
  • Select the employee’s name.
  • Now Select Edit inside the Pay section.
  • Select Show all pay types.
  • Now select all relevant fringe benefits.
  • Select OK.
  • You can input a recurring quantity for Fringe Benefits when the cost is reported every pay period.

NOTE: If you are using older version of QuickBooks, then upgrade to QuickBooks Premier 2020 or Quickbooks Enterprise 2020 or QuickBooks pro 2020 and save up to $125.

QuickBooks Online Payroll-

  • In the navigational bar, pick Workers.
  • Select employee’s name.
  • Select the pencil ✎ icon next to the Pay section.
  • Under Step 3, How an awful lot do you pay this employee, choose + Add additional pay types (like overtime, sick, and excursion pay) .
  • Select Even more way to pay this employee.
  • Now Select all applicable fringe benefits.
  • Select Done.

Enter a value of a fringe benefit on a paycheck:

Use or contribution of a fringe benefit must be reported on a paycheck. This will ensure that the W-2 is correct at the end of the year. Choose your product to see the steps on adding the fringe benefit to a paycheck.

Intuit Online Payroll-

  • Be certain the Fringe Benefit pay kind has already been carried out to the employee.
  • Select the Payday tab.
  • Under Enter Compensation, select the employees to pay.
  • Enter the employee’s regular pay and the amount of the fringe benefit in the fringe benefit field you formerly added.
  • Create and Approve the payroll.

Intuit Full Service Payroll-

  • Be positive the Fringe Benefit pay type has already been carried out to the employee.
  • Select the Payday tab.
  • Under Enter Compensation, choose the personnel to pay.
  • Enter the employee’s normal pay and the quantity of the fringe benefit inside the fringe gain subject you previously added.
  • Select Preview Payroll.
  • Review the payroll by selecting on each employee s net pay, or through reviewing the Preview Payroll Details report.
  • Select Submit to Intuit.

Contact us

For more information don’t hesitate to call at +1-800-961-4623 and get the assistance immediately. QuickBooks helpdesk is available for you to 24*7. QuickBooks 24*7 Help desk professionals are professionals, polite, and QuickBooks technical experts in solving QuickBooks issues and errors. You can also contact at through email or you can live chat with our QuickBooks technicians.

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