The problem with using the Addition payroll item is that it adds the QSEHRA payment through payroll to Gross Pay. Even though QB calculates this item as non taxable, THIS IS NOT GROSS PAY. It is a reimbursement in the same way that a travel reimbursement is not gross pay. Including it in gross pay causes any calculation made on percentage of gross pay to be wrong. If an employee has a 5% of gross pay deduction for their 401k and a 3% 401k company match, both numbers are inflated by the reimbursement.
