Hi Lisa,

The recommended process would be to refund the deduction. Steps can be found in the knowledgebase here:

Can I refund a pretax deduction and create the taxable and subject-to amounts on the employee record?

Thanks!

Just so I'm sure I understand how this works.  For example, employee normally pays via deduction $40 per pay period for health insurance.  Employee rebate is $10.  I would change the deduction from $40 to $30 and somehow the $10 will be added to gross pay?

We get premium deductions once a month from our medical insurance carrier. We enter the $40 and then enter a second one for the credit (-$10 in your example). You can do it to the same deduction ID or you can create a new deduction ID so you can track it later.

Yes, during this pay period, since the deduction is now $30 (taking in to account the credit) instead of $40, the taxable and subject-to amounts will be higher by $10. Gross pay less the pre-tax deductions is your taxable/subject-to amount. So, if the pre-tax deduction is lower, the taxable/subject-to will be higher.

Hope that makes sense.

We get premium deductions once a month from our medical insurance carrier. We enter the $40 and then enter a second one for the credit (-$10 in your example). You can do it to the same deduction ID or you can create a new deduction ID so you can track it later.

Yes, during this pay period, since the deduction is now $30 (taking in to account the credit) instead of $40, the taxable and subject-to amounts will be higher by $10. Gross pay less the pre-tax deductions is your taxable/subject-to amount. So, if the pre-tax deduction is lower, the taxable/subject-to will be higher.

Hope that makes sense.

I understand, thank you.  Crossing my fingers that all goes well with it.  Thanks for your help.

It will not allow me to enter a deduction ID more than once per employee check.  Now what?

Oh, I thought it would. Sorry!. You'll need to create a new Deduction ID for the credits. You can call it Premium Reduction. It will have the same effect.