to clarify, you have two benefits provided by one insurance company

one benefit is paid by the employer and is employee taxable, the other is fully paid by the employee

and you need to create one payable liability to be paid to the insurance company

you can't use the same liability account for both deductions, but you can create a 2-line purchase invoice, paid to the insurance company. Each line pays the corresponding liability

to clarify, you have two benefits provided by one insurance company. YES

one benefit is paid by the employer and is employee taxable, the other is fully paid by the employee

and you need to create one payable liability to be paid to the insurance company. YES

you can't use the same liability account for both deductions, but you can create a 2-line purchase invoice, paid to the insurance company. Each line pays the corresponding liability  AS OF NOW, I HAVE THE ENTIRE PREMIUM PAID BY THE COMPANY,  BEING POSTED TO MY 5000 ACCOUNT. I HAVE THE TAXABLE PORTION BEING CALCULATED BY THE PAYROLE MODULE WHEN I WRITE A PAYCHEQUE. THE ONE PORTION OF NON-TAXABLE INSURANCE PAID BY THE EMPLOYEE NEEDS TO BE DEDUCTED FROM PAYCHEQUE AND BE PAID BACK TO THE COMPANY. THIS IS BECAUSE THE COMPANY IS HAVING THE ENTIRE PREMIUM, INCLUDING THE AMOUNT TO BE PAID BY EMPLOYEE, BEING DEDUCTED FROM THEIR BANK ACCOUNT. I NEED TO KNOW HOW TO SET THIS UP AS THE NON-TAXABLE PORTION OF THE PREMIUM IS NOT AN EXPENSE FOR THE COMPANY AND NEEDS TO NOT BE IN THE 5000 EXPENSE ACCOUNT. THE EMPLOYEE PREMIUM NEEDS TO BE DEDUCTED FROM THE PAYCHEQUE. THANKS.

Go into Settings -> Payroll -> Names -> Inc&Ded -> select a deduction and rename it to BenDed (name it whatever you want but you are only allowed 12 characters).

Then go back to left menu and select Dedcutions under 'Payroll' and ensure that all columns have a tick mark since you want to deduct the benefit after all taxes.

Now in left menu go down to Linked Accounts -> Deductions and enter your 5000 expense account in the Linked Accounts column. No need to enter anything into the Payment Adjustment Account.

Now go back into your employee profiles - select the deduction tab and put a tick mark next to the BenDed name along with the amount to deduct every pay period.

Now you should be able to post the employee(s) paychq with the deduction coming off their paychq and at same time it is reducing the 5000 expense account.

Another method is to post the Premium invoice into 2 account - the company paid portion for 5000 expense and the other portion being paid by employees would go into a 2000 liability account. Then do same as above but use the 2000 liability account nbr instead of the 5000 expense acct nbr. This will track the 2000 general ledger to ensure that all employees are being deducted this amount - sometimes an employee will miss a payrperiod so a catch up amount needs to be deducted.

Hope this helps.

Smithco, Yes, this works well. Thank you very much for your help. :) slc31