Employees and payroll

Thanks for getting back, Martha.

Allow me to step in and help you some more.

To correct the difference in the net amount, you can create an addition or deduction item that is non-taxable and apply it on your next payroll. These items won't be added to the employee's taxable earnings.

Here's how to set up an addition payroll item:

1. Go to Lists.
2. Click Payroll Item List.
3. Select the Payroll Item button, and click New.
4. Select Custom Setup, and click Next.
5. Select Deduction, and click Next.
6. Enter your preferred name of the payroll item then click Next.
7. Leave the first two fields blank, select the account which will be affected by this payroll item in the Liability account drop-down list and click Next.
8. Make sure None is selected in the Tax Tracking Type window and click Next.
9. Continue to click Next until you reached the Finish button.

Here's how to set up a deduction payroll item:

1. Go to Lists.
2. Click Payroll Item List.
3. Select the Payroll Item button, and click New.
4. Select Custom Setup, and click Next.
5. Select Deduction, and click Next.
6. Enter your preferred name of the payroll item then click Next.
7. Leave the first two fields blank, select the account which will be affected by this payroll item in the Liability account drop-down list and click Next.
8. Make sure None is selected in the Tax Tracking Type window and click Next.
9. Continue to click Next until you reached the Finish button.

For the detailed steps and additional information, you can go through this article: Create a non-taxable reimbursement payroll item in QuickBooks Desktop Payroll.

Please don't hesitate to reach back to me if you have other payroll questions. I'd be delighted to answer them for you.