How to set up Employee payroll deduction that is based on an hourly rate?

Hi winslowcarla,

Setting up a payroll deduction based on hourly rate is currently unavailable in QuickBooks Online (QBO). You'll have to manually enter the amount or by percentage of gross pay for the deduction on the employee's profile.

Let me show you how:

1. Go to Employees.
2. Locate and click on the employee's name.
3. In the Does (employee's name here) have any deductions? (Examples: retirement, health care) section, click on the pencil icon to edit.
4. Select Other deductions from the Deduction/contribution type drop down.
5. Choose a type.
6. Enter the name of the deduction. 
7. Then, select either $ amount, % of gross pay, or None.
8. Once you're done, click on OK.

I've attached some screenshots for your visual reference.

To learn more some payroll various tasks in QBO, visit our Help Articles page through this link: Employees and payroll.

That'll do it. Leave a message below if you need anything else. I'll be around to help. Take care.