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Level 1

Additional tax deductions from pay cheque are not being applied. It is entered in the TD1 form but not showing up on paycheque

 
3 Comments
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QuickBooks Team

Additional tax deductions from pay cheque are not being applied. It is entered in the TD1 form but not showing up on paycheque

Hi there,

 

It's vital your tax deductions are showing up on the pay cheque. Don't worry, I'd be happy to give you a hand with setting this up. 

 

To set up an after tax deduction in Standard Payroll, follow these steps

 

1. Click the Employees tab on the left navigation menu. 

2. Select your employee from the list. 

3. Click the small pencil icon next to Pay.

4. Click the link under Question 5 that says, "Add a new deduction".

5. In the Deduction/Contribution drop-down menu, select New deduction/contribution.

6. In the Deduction/Contribution Type drop-down, choose Other deductions.

7. In the Type drop-down menu, choose Other after tax deductions. Note: This is imperative, as this deduction won't be taxed. 

8. Enter the amount

9. Click OK.

 

 

If you're using Advanced Payroll, follow these steps:

 

1. Click the Employees tab on the left navigation menu. 

2. Choose Pay and Tax Settings. 

3. Click Deductions and Benefits. 

4. Select Add

5. Choose Other Deduction

6. Name the deduction, then click Save

7. Click on the employee who you'd like to add this deduction to. 

8. Select Deductions and Benefits

9. Click Add

10. Choose the deduction you just created. 

11. Enter the amount. 

12. Under Frequency, select Once on the next pay or your desired frequency.

13. Click Save

 

Once you've set this up and you're still not seeing the tax deductions on the pay cheques, I recommend contacting our support team using this link here.

 

Feel free to ask other questions. 

 

 

 

 

Highlighted
Level 1

Additional tax deductions from pay cheque are not being applied. It is entered in the TD1 form but not showing up on paycheque

This is a misleading response.  The customer wants extra tax deducted from her paycheque as in TD1.  You are advising an after tax deduction which is totally wrong 

Highlighted
QuickBooks Team

Additional tax deductions from pay cheque are not being applied. It is entered in the TD1 form but not showing up on paycheque

Hello smiffie,

 

Thanks for bringing this to my attention. I'll be following up with my colleague to make sure that we're providing accurate information to customers. I know how important it is to get these details right, so I want to make sure this is addressed. In the meantime, I'd be happy to go over how to account for additional tax deductions on the TD1 form.

 

The steps vary slightly depending on whether you're using Standard or Advanced Payroll in QuickBooks Online, so I'll go over both below so that everyone has the steps they need.

 

Additional tax deductions on TD1 form in Standard Payroll

  1. Select the Payroll tab.
  2. Choose Add an employee if adding someone new or click the name of an existing employee, then Edit employee on the next screen.
  3. Click the pencil icon for the What are [employee's] tax withholdings? section.
  4. Enter the additional amount to be deducted in the Additional tax amounts that you want to deduct from each pay cheque field.
  5. Click Done to save.

This article has a bit more information about TD1s in Standard Payroll: Form TD1 overview

 

Additional tax deductions on TD1 form in Advanced Payroll

  1. Select Payroll in the left menu.
  2. Choose the Employees tab.
  3. Click Add employee for a new one or Edit beside the name of an existing employee.
  4. Click the Taxes tab on the employee profile.
  5. Use the Withhold additional tax field to account for the additional amount to be deducted.
  6. Click Save.

When entered using these steps, the additional TD1 deduction will calculate on the pay cheque. In this case, it won't show up on the cheque as its own unique line, but rather it's lumped in with the other tax amounts such as in the income tax or federal tax amounts. I recommend doing some manual calculations to make sure the amounts are correct. When concerned, it doesn't hurt to get in touch with QuickBooks Online support to make sure things are registering they way they should. These are the contact options.

 

Schedule a Callback or Chat: click (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat. Support is available from Monday to Friday between 9 a.m. and 8 p.m. ET.

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I hope that helps!