Set Up and Record Group Health Payroll Deductions

Some employers participate in a group health plan. These plans commonly include such deductions as medical insurance, dental insurance, life insurance, long-term disability, and many others. If the deduction is tax exempt (deducted before calculating taxes), it is commonly called a Cafeteria plan. These deductions can be set up using either of the following scenarios:

  • Standard Health Insurance Benefit: Variable or flat rate for employees deducted after taxes
  • Cafeteria Style Group Health Plan: Variable or flat rate for employees deducted before taxes