Learn how to set up HRA reimbursements on QuickBooks desktop. Many employers offer tax-free reimbursements for a variety of reasons. We explain how to record HRA reimbursements on QuickBooks Desktop and how to add them to a paycheck, and more.
Because these payments aren’t taxable, they don’t appear on payroll tax or other tax reports.
Fellow the Below steps to HRA Reimbursements:
To Set up Tax-Free Reimbursements:
- From the Employees menu, pick out Manage Payroll Items > New Payroll Item.
- Select Custom Setup and click on Next.
- Select Company Contribution and click on Next.
- Enter a completely unique call for this new payroll item, with a view to appear on worker pay vouchers, pay stubs, and on payroll reports (for example, “Reportable Qual. Small ER HRA” ). Press Next.
- Leave the agency statistics blank. This is a monitoring and reporting item only, not a true legal responsibility item.
- Click the arrow subsequent to the Liability account field, and pick out .
- In the Add New Account window, pick Other Expense because the Account Type and enter a brand new Account Name (for example, “Reportable Qual. Small ER HRA”). Click Save & Close.
- Click the drop-down subsequent to the Expense account container and pick the account you simply created. press Next. Note: If you are creating more than one payroll object for monitoring QSEHRA payments, continue to use this account for both the liability and expense accounts. Setting each the liability and expense accounts the equal creates a “wash” item that suggests a zero amount for your Profit & Loss statements. This allows you to tune QSEHRA payments for W-2 reporting functions without those numbers affecting your monetary reports.
- Click Yes to disregard the warning which you have set your liability account and cost account to the same account.
- Click the arrow for the tax tracking kind, and select the new tax-tracking kind Qual. Small ER HRA. Press Next.
- Click Next to accept the default tax settings.
- Now Click Next to accept the default settings on the Calculate based on quantity page.
- Click Finish to just accept the default settings at the Default rate and restriction page.
Any amounts tracked with the new tax-tracking type will be reported as required on Box 12 of Form W-2 code FF.
Taxable Reimbursements (QSEHRA Only):
While most reimbursements thru QSEHRA are tax-free, there are a few varieties of allowable reimbursements that ought to be taxed. Taxable reimbursements via QSEHRA consist of charges paid pre-tax thru a spouse’s business enterprise for a group plan and over-the-counter medications. In addition, monthly premiums on sharing plans, called monthly shares, may be reimbursed on a taxable basis along QSEHRA.
In case you still unable to set up HRA reimbursements on QuickBooks desktop, then you must call our QuickBooks technical support team at for the instant support. Our technical support team will solve your problem in minimum amount of time and also guide you step by step how to set up HRA reimbursements on QuickBooks. You can also connect with us through Quickbooks live chat support option at any hour of the day 24×7.