Version 1.1 by christie w on 2023/02/01 22:09
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1 **Medical deductions **are normally exempt from the Federal and State Withholding and the Medicare and Social Security Taxes.
2 \\For clarification as to what taxes are exempt from medical items consult with the plan administrator or your Accountant.
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5 **To set up medical items to be properly exempted from taxes:**
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8 ** In Payroll Items, click on the red** "New"** button across from **Deductions**.
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10 [[image:https://www.aatrix.com/files/7914/2359/3683/Personalizing_Medical_01.png||alt="Learn how to set up and personalize medical deductions." height="444" width="680"]]
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14 ** In the **"Title" **box, enter a title for the deduction that will appear on checks and in the program.
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17 ** From the **"Type"** dropdown menu, choose **"Insurance".**
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20 ** Select the proper **"Calculation Method"**. This would more than likely be** Flat Amount** for an Insurance deduction. Leave the amount at $0.
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23 ** To the right under **"Tax Exempt",** select the taxes that the item is exempt from.
24 \\If the Medicare and Social Security are exempted be sure to select the deductions //**and**// the company portion of the taxes.
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27 ** If you post your payroll to your Quickbooks program under the** "Accounting Links"** section, select the account to track the liability amount in and click **"OK"** to create the deduction.
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29 [[image:https://www.aatrix.com/files/4914/2359/3684/Personalizing_Medical_02.png||alt="Learn how to set up and personalize medical deductions." height="326" width="623"]]
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33 ** **Select an employee from the list** that would be subject to the Medical Insurance Deduction.
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36 ** Double-click on the Medical Insurance deduction to bring up the **"Edit Deduction" **window.
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38 [[image:https://www.aatrix.com/files/6314/2359/3685/Personalizing_Medical_03.png||alt="Learn how to set up and personalize medical deductions."]]
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42 ** In the **"$" **box below the **"Calculation Method"** enter the amount to be deducted for the employee highlighted each payday and click **"OK".**
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44 [[image:https://www.aatrix.com/files/7114/2359/3686/Personalizing_Medical_04.png||alt="Learn how to set up and personalize medical deductions." height="323" width="617"]]
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48 ** The **"P" **that appears in front of the deduction with the employee selected on the list indicates that the Medical Deduction has been **personalized **to calculate a specific amount for the employee.
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51 ** **Select any other employees** subject to the Medical Insurance deduction and **repeat the steps** to personalize for each.
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53 [[image:https://www.aatrix.com/files/2614/2359/3687/Personalizing_Medical_05.png||alt="Learn how to set up and personalize medical deductions." height="446" width="680"]]