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Employees and payroll
Hi there, KeithM.
It's a pleasure to have you here in the Community. I'm here to help you set up the payroll deduction for this employee.
The following steps will guide you through the step-by-step process to create this payroll item:
- From the Lists menu, select Payroll Item List.
- Click the Payroll Item drop-down button, then choose New. You could also press CTRL + N.
- Select Custom Setup, then click Next.
- Follow the on-screen instructions on the corresponding pages:
- Payroll item type: Select Deduction.
- Name used in paychecks and payroll reports: Enter a name for the deduction.
- Agency for employee-paid liability: Leave the Agency Name and Agency Identification Number fields blank. Also, QuickBooks will auto-fill the Liability account field for you.
- Tax tracking type: Make sure to select None if this is a non-taxable deduction. If it is, then select the appropriate type.
- Taxes: Just click Next.
- Calculate based on quantity: If this isn't based on quantity and hours, then choose Neither.
- Gross vs. net: Select net pay to ensure that this won't affect the gross wages that'll appear on your forms.
- Default rate and limit: You can leave the Rate and Limit fields blank. - Click Finish.
From there, you'll need to add this item to the employee's payroll information. Let me walk you through the steps on how to do this:
- From the Employees menu, select Employee Center.
- Double-click the employee's name.
- Go to the Payroll Info tab.
- In the Additions, Deductions, and Company Contributions section, enter the deduction under the Item Name column.
- Click OK.
That's it! For additional insight about this, I recommend following this article: Set up payroll item
However, before you go, if you also want to create an invoice for the employee then apply this deduction to it I recently answered a similar question. You may find it helpful. The link below will lead you to my answer:
https://community.intuit.com/questions/1779590
Please feel free to get in touch with me here for any additional questions, I always has your back. Thanks for dropping in and have a wonderful rest of your week.