When a paycheck must have a specific net amount, QuickBooks Desktop Payroll allows you to gross up the amount on the employee’s paycheck. Learn how by following the steps below.
Note: This is only available to QuickBooks Desktop Payroll Enhanced and Assisted users.
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When grossing up a paycheck, consider the following:
- The company can pay the employee portion of the taxes. You can choose to create a deduction item for the tax paycheck or choose not to charge the employee.
- Adjusting the Federal and State Income tax could affect your year-end tax filing. Consult your employee before making changes.
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Gross up a paycheck
- Go to Employees, then select Pay employees. You may choose either Scheduled or Unscheduled Payroll.
- From the Enter Payroll Information window, put a check beside the employee whose paycheck you want to gross up.
- Select Open Paycheck Detail….
- In the Preview Paycheck window, enter a salary or bonus payroll item with no rate in the Earnings section. Make sure to remove any other payroll items listed since using any other type of item doesn't work.
- Put a check in the Enter net/Calculate gross checkbox. Although QuickBooks calculates and deducts the appropriate taxes, selecting Enter net/Calculate gross allows you to give employees the entire amount as their net pay.
- Select Save & Close, then follow the procedure to pay employees.
What if I want to use an hourly, piece work, or addition item as the Earning item?
You need to use the trial and error method to calculate the gross.
- In the Earnings section, enter a gross amount that is higher than the desired net. Press the Tab key on your keyboard to calculate the net.
- Adjust the gross amount under Earnings until you get the desired net amount.
