Fringe benefits are the benefits in kind given by the employers to the employees over above their normal salaries or daily wages. These benefits are also known as perquisites or perks. These benefits help companies in recruiting, motivating, and retaining high-value employees. The fringe benefits include insurance (health as well as life), employee stock options, cafeteria services at subsidized rates, employee discounts, etc.
If you want to include fringe benefits to be reported as part of the employees’ paycheck in addition to their normal salaries, then you need to first enable the fringe benefits in the employees’ profile. The below stepwise step writeup will help you in setting up fringe benefits in QuickBooks.
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How can you Setup Fringe Benefits in QuickBooks?
You need to follow the below steps for adding or enabling the fringe benefit in the employee’s profile before reporting it as an addition to the employee’s salary paycheck.
Step 1. First of all, click on the navigational bar and choose the workers tab and choose the employee’s name to whose profile you want to add fringe benefits as pay type.
Step 2. In the next step, in the Pay section under after clicking on the employee’s name click on Edit (pencil icon).
Step 3. At last, add details like how much you want to pay the specific employee > click on + sign and add all the relevant fringe benefits (holiday pay, gym reimbursement, etc.).
Step 4. In the next step, click on even more ways to pay this employee and select all the fringe benefits and click on Done.
Also Read : How to Set up HRA in QuickBooks
For Entering the Value of Fringe Benefit on a Paycheck
For entering or reporting the value of fringe benefits on a paycheck you need to follow the below steps:
Step 1. First of all, click on the workers’ tab and click on Run payroll.
Step 2. Now in the next step, you need to enter the employee’s regular pay and then enter the amounts of fringe benefits you want to report in the fringe benefits fields selected earlier.
Step 3. In the last step, you will have to click on preview, verify all the details, and submit the payroll.
For Adding Fringe Benefit Adjustment
For adding fringe benefit adjustment in QuickBooks, you need to follow the below steps:
Step 1. First of all, click on workers > employees > run payroll > fringe benefits only.
Step 2. In the next step, choose “yes “if the business would pay tax and “No” if the employee would pay tax.
Step 3. Now, click on the box against the employee’s name for adjustment and enter the adjusted value of the benefit. After that click on preview payroll.
Step 4. Finally, review the adjustment and click on submit payroll.
Hopefully, the above steps will guide you with any issue relating to the set-up of the fringe benefits in QuickBooks. In case you still need further information on any point, you can dial a toll-free number +1844-313-4856 and our QB technical helpdesk will help you.