Set Up a Standard Health Insurance Benefit

You can add a health insurance benefit through Payroll Settings (or the Payroll Setup Wizard).

1. From the Maintain menu, select Payroll and choose Payroll Settings.
2. In the left navigation area, click on Benefits and then Summary of Benefits.
3. Under the list of benefits, click Add Another Benefit.
4. On the Add a Benefit window, select Insurance Plan and click OK.
5. On the Insurance Plans window, select the type of plan.
6. Who pays for this plan? Select Employee, Company, or Both.
7. For most plan types, you must give the plan a name. Sage 50 will use the name you supply on employee screens and on reports. The name is only used internally, within Sage 50. It must start with a letter, have at least 2 characters, and cannot have spaces or special characters like asterisks.
8. Are the company expenses for this plan tracked per paycheck? Although money for insurance plans is usually paid quarterly or monthly, the amount due accrues for each pay period. You can choose to put aside money for each paycheck to track the amount you will have to pay.
9. Enter the standard amount employees pay per check. You can adjust this for individual employees later.
10. Indicate if the employee contribution should appear on the W-2. This is strictly informational; it has no effect on gross pay.
11. Now you must enter the general ledger accounts for the expense and liability associated with the 401(k). If there is both an employee- and company-paid amount, then you will need to enter accounts for both.
12. Click Finish to establish the new payroll defaults.
13. Now you just need to update each employee record with the amount they contribute to the plan, if it is different than the standard amount. This is done on the Withholding Info tab of the Maintain Employees window.