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Last modified by Andrew K on 2025/12/31 20:50
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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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7 * In Payroll Items, click on the red** "New"** button across from **Deductions**.
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9 [[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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12 * In the **"Title" **box, enter a title for the deduction that will appear on checks and in the program.
13 * From the **"Type"** dropdown menu, choose **"Insurance".**
14 * Select the proper **"Calculation Method"**. This would more than likely be** Flat Amount** for an Insurance deduction. Leave the amount at $0.
15 * To the right under **"Tax Exempt",** select the taxes that the item is exempt from.
16 ** If the Medicare and Social Security are exempted be sure to select the deductions //**and**// the company portion of the taxes.
17 * If you post your payroll to your Quickbooks program under the** "Accounting Links"** section, select the account to track the liability amount in and click **"OK"** to create the deduction.
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19 [[image:https://www.aatrix.com/files/4914/2359/3684/Personalizing_Medical_02.png||alt="Learn how to set up and personalize medical deductions." height="326" width="623"]]
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22 * **Select an employee from the list** that would be subject to the Medical Insurance Deduction.
23 * Double-click on the Medical Insurance deduction to bring up the **"Edit Deduction" **window.
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25 [[image:https://www.aatrix.com/files/6314/2359/3685/Personalizing_Medical_03.png||alt="Learn how to set up and personalize medical deductions."]]
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28 * In the **"$" **box below the **"Calculation Method"** enter the amount to be deducted for the employee highlighted each payday and click **"OK".**
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30 [[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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33 * 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 specific amount for the employee.
34 * **Select any other employees** subject to the Medical Insurance deduction and **repeat the steps** to personalize for each.
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36 [[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"]]
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38 ----
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40 == Related Pages: ==
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42 === [[Personalizing Deductions for Individual Employees>>doc:Mac.Payroll Items .Personalizing Deductions for Individual Employees.WebHome]] ===
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44 Learn how to personalize deductions for every employee.
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46
47 === [[Creating and Assigning Income Items>>doc:Mac.Payroll Items .Creating and Assigning Income Items .WebHome]] ===
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49 Learn how to create and assign other income items.
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51
52 === [[Setting up Oregon Statewide Transit Tax (STT) deduction>>doc:Mac.Payroll Items .Setting up Oregon Statewide Transit Tax (STT) deduction .WebHome]] ===
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54 Learn how to create the Oregon Statewide Transit Tax (STT) deduction.
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56
57 === [[Child Support or Garnishment Personalized Deductions>>doc:Mac.Payroll Items .Child Support or Garnishment Personalized Deductions .WebHome]] ===
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59 Learn how to personalize payments and/or court-ordered garnishments for an employee.
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61
62 === [[Setting up Reimbursements>>doc:Mac.Payroll Items .Setting up Reimbursements .WebHome]] ===
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64 Learn how to set up reimbursements for employees.