I copy payroll from our payroll company into Quickbooks employee payroll. I have a paycheck that is a $90 reimbursement and then $90 going taxfree to the employees HSA. Thus the payroll taxes are negative (with a $11 net payroll check) for both employee contribution and employer contribution. Quickbooks won't allow a negative tax amount. How do I enter this so the payroll is correct? Any suggestions?
Thanks for choosing QuickBooks as your accounting tool, @Kroeh.
I'm here to answer your inquiry about entering negative tax amount.
Did you enter the payroll data from your company as YTD adjustments? If so, there isn't a need to enter the tax amounts with a negative sign. This is because taxes are automatically recognized by QuickBooks as deductions.
The same behavior should be applied when creating paychecks. The taxes will directly appear with negative amounts under the Employee Summary section.
If you're referring to something else, please let me know. You can provide a screenshot of the results you're getting or details on how you entered the reimbursement and HSA employee.
I'm looking forward to your response.
I'm sorry, I guess I didn't explain very well. The taxes in this case are a negative deduction- therefore positive. Quickbooks will not let me do this.
You don't need to enter a negative amount for your paycheck.
It isn't necessary to input negative amounts as QuickBooks recognizes them as deductions, but I have a solution for you. You can override the amounts in your paychecks.
Here's how you can edit the amounts:
You can also create a non-taxable reimbursement payroll item. First, you'll need to add a new payroll item. You may follow these steps:
Next, you need to set up the item. Here's how:
Once completed, you can now add the item to your employee's record. Here's how:
That's it! You can now successfully enter the reimbursement to your payroll. Please let me know if you have other questions.