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Payroll deduction for excess time off

I have salaried employees who have exceeded their allotted paid time off. I need to reduce their pay. I would like to create a payroll deduction item so that the deduction will appear on their paycheck instead of changing their salary to the reduced amount. Is this OK? Are there others out there you have done this and if so, what did you do?

Best answer 05-30-2019

Accepted Solutions
QuickBooks Team

Re: Payroll deduction for excess time off

Greetings, @jbuckner.


Let me be the first to welcome you to the Community. 


You can create a deduction item and add it to your employees’ paychecks to reduce their pay. Here’s how:

  1. Go to the Lists menu and select Payroll Item List.
  2. Click the Payroll Item drop-down and select New.
  3. Choose Custom Setup, then hit Next.
  4. Select Deduction, then click Next.
  5. Enter the name of the deduction, then hit Next.
  6. Skip the two fields and choose a Liability account. Enter the same expense account used for the time-off item.
  7. On the Tax tracking type drop-down, choose Compensation.
  8. Hit Next until you reach the Calculate based on quantity window. Select Neither and click Next, then Finish.

payroll item 1.PNGpayroll item 2.PNGpayroll item 3.PNGpayroll item 4.PNGpayroll item 5.PNGpayroll item 6.PNGpayroll item 7.PNGpayroll item 8.PNG

 

When you're ready to pay your employees, simply add the item created and enter the amount for the excess paid time-off. 


For more information about the process, check out this article: Reduce paycheck wages for an employee who has been overpaid.


That should answer your concern for today.


Let me know how this goes and if you need anything else. I’m always here to help. Take care!

3 Comments
QuickBooks Team

Re: Payroll deduction for excess time off

Greetings, @jbuckner.


Let me be the first to welcome you to the Community. 


You can create a deduction item and add it to your employees’ paychecks to reduce their pay. Here’s how:

  1. Go to the Lists menu and select Payroll Item List.
  2. Click the Payroll Item drop-down and select New.
  3. Choose Custom Setup, then hit Next.
  4. Select Deduction, then click Next.
  5. Enter the name of the deduction, then hit Next.
  6. Skip the two fields and choose a Liability account. Enter the same expense account used for the time-off item.
  7. On the Tax tracking type drop-down, choose Compensation.
  8. Hit Next until you reach the Calculate based on quantity window. Select Neither and click Next, then Finish.

payroll item 1.PNGpayroll item 2.PNGpayroll item 3.PNGpayroll item 4.PNGpayroll item 5.PNGpayroll item 6.PNGpayroll item 7.PNGpayroll item 8.PNG

 

When you're ready to pay your employees, simply add the item created and enter the amount for the excess paid time-off. 


For more information about the process, check out this article: Reduce paycheck wages for an employee who has been overpaid.


That should answer your concern for today.


Let me know how this goes and if you need anything else. I’m always here to help. Take care!

Active Member

Re: Payroll deduction for excess time off

Thank you so much for your help! I created my new payroll item.

QuickBooks Team

Re: Payroll deduction for excess time off

You're welcome, @jbuckner.

 

I'm glad you were able to follow the steps and set up your deduction item.

 

For tips and related articles, please visit our QuickBooks Community site for reference: QBDT Self-help.

 

Post in the Community again if you have any other concern. I'm more than happy to help. Have a good one!