Offering additional perks is undoubtedly one of the best ways business owners can add value to improving their employees’ experience of working in the company. And one of the most valuable additional perks to offer is health insurance.
Many business owners, especially startup entrepreneurs, live under the false assumption that offering health insurance makes the business’s accounting process more complicated. While this is partially true, it’s important not to let such an assumption hold you back from offering value to your employees. If you use QuickBooks for your company’s accounting processes, syncing health insurance expenses with the company’s annual overall expenditures becomes simple and hassle-free.
Why do you need to set up health insurance deductions in QuickBooks?
If you use QuickBooks for accounting, it doesn’t make sense to have separate accounting processes just for health insurance deductions. By syncing health insurance deductions with your company’s overall expenses, it becomes easier for your accounting team to keep proper track of every employee’s healthcare expenses.
Setting up health insurance deductions in QuickBooks means that you can include the health insurance deductions of every employee in their payroll. Therefore, when the contract of the employee comes to an end or when the employee leaves the company, you can easily discontinue the health insurance deduction associated with his/her payroll.
Factors to Consider Before Setting Up Health Insurance Directions in QuickBooks
It’s important to buy employee health insurance packages before setting up health insurance deductions in QuickBooks. This will help you make sure that you have health insurance policies in place when setting up the deductions. Also, it’s important to already have set up employee payroll using a premium version of QuickBooks.
Steps to follow for setting up health insurance deductions in QuickBooks
Follow the steps to set up health insurance deductions in QuickBooks the simple and hassle-free way:
- The first step is to open the Employees and choose the Payroll setup option.
- Go to the Employee Benefits section and choose the Insurance Benefits option.
- Under the Insurance Benefits option, choose the Health Insurance option.
- The next step is to choose the type of health insurance.
- Once done, you need to select whether the employee, the company, or both parties pay for the insurance.
- The final step is to choose the health insurance policy provider and enter the policy details.
We hope that the steps listed above will help you complete the health insurance deduction processes without facing any hassle. However, if you do come across any issue and can’t get past any step, reach out to our expert team. They will assist you with the right solutions tailored to your specific issues.