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cromwellpr
Level 1

How do I deduct pay from an employee for an item the company bought for them?EX:company purchased tools for the employee, they were to pay for them via payrol deductions.

 
2 Comments 2
LeithG
Level 7

How do I deduct pay from an employee for an item the company bought for them?EX:company purchased tools for the employee, they were to pay for them via payrol deductions.

LauraAB
QuickBooks Team

How do I deduct pay from an employee for an item the company bought for them?EX:company purchased tools for the employee, they were to pay for them via payrol deductions.

Hey there cromwellpr,

 

Welcome back to the Community! It's nice to hear that your company was in the position to buy tools for your employee. I can see how having them pay it back through payroll deductions would keep things simple for both of you. I'd be happy to take you through the steps to set this up.

 

Setting up payroll deductions is simple, regardless of whether you're using QuickBooks Online Payroll (formerly Standard Payroll) or Advanced Payroll. I'll outline both so that you can be sure to have the steps you need for the module you're using.

 

Create a deduction in QuickBooks Online Payroll

  1. Select Payroll from the left menu.
  2. Click the name of the employee.
  3. Click Edit employee on the next page.
  4. Scroll to the Does [employee] have any deductions or contributions? and click Add deductions.
  5. Choose New deduction/contribution from the Deduction/contribution drop-down menu.
  6. Select Other deductions from the Deduction/contribution type drop-down menu.
  7. Choose the Type of deduction/contribution.
  8. Use the Description field to give it a name.
  9. Enter the Amount per pay period (Note: You can leave this blank if it changes each pay cheque and you'd like to enter it manually in the pay run).
  10. Click OK.

If needed, you'll also be able to apply this deduction to other employees as well. It'll be as simple as following steps 1 through 4, then choosing the deduction you created in the drop-down menu at step 5.

 

When you run payroll, the field will be there for you, either prepopulated with the amount entered in the setup or as a blank field for you to enter the amount you'd like. It's pretty easy!

 

Create a deduction in Advanced Payroll

  1. Select the Gear icon.
  2. Choose Advanced Payroll settings.
  3. Click Deductions & benefits.
  4. Click Add.
  5. Select the Type.
  6. Give it a Name.
  7. Click Save then click the X in the upper right to exit settings.
  8. Select the Payroll menu.
  9. Click Edit next to the employee name.
  10. Select the Deductions & benefits section of their profile.
  11. Click Add.
  12. Choose the deduction you just created.
  13. Enter an amount in the Employee pays field.
  14. Configure the other options as needed.
  15. Select Per cheque for the Frequency.
  16. Click Save.

For Advanced Payroll, if you're looking for the amount to vary each cheque, enter an amount in step 13, then choose Once on the next pay for the Frequency. Each time you'd like the employee to pay the varied amount on a pay run, repeat the steps of setting it up in the employee profile again.

 

If you are using Advanced Payroll, here's some important information about upcoming changes to that service. You may have received an email about this already, but here's the Community article just in case: QuickBooks Online Advanced Payroll to Wagepoint

 

For both Online Payroll and Advanced Payroll, you have the option to remove the deduction from the employee profile at any point. For Online Payroll, just revisit that deductions section on the employee profile and click the trash can icon to remove it. For Advanced Payroll, navigate to the employee profile's deductions section, click the down arrow, and choose Delete to remove it from the profile.

 

Give me a shout if you have further questions about these options. I want to make sure you're good to go with your deductions!

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