Recording a Cash Payment for Active Employee Insurance
On rare occasions such as a 10 month employee starting in May but electing insurance which will carry over through the summer, it’s possible that an employee’s pay cannot cover their insurance. In this case, the check payment from an employee needs to be recorded in a special manner so that the payroll software understands this was an insurance payment.
Before beginning be sure that HR provided you with a break down of how the payment will be applied.
- Begin the Cash Receipt recording process like normal.
- Instead of clicking Save & Add Cash Receipt click Save & Add Receipt for BM.
- In the Payor field select the employee.
- In the Short Description column, type “Ins payments for <month>-<month> <year>”
- Find the table on the bottom half of the screen titled Employee Plan Enrollments.
- In the Payment Amount column, enter the amounts to be applied to each plan as specified by HR.
- Check the Cash Receipt Amount filed under the Payment Date. This amount is the sum of the entire Payment Amount column and it should match the total check amount.
- Click Save
