Set up and add deductions and contributions to an employee's payroll in QuickBooks Online Payroll

Learn how to set up and add deductions and contributions to an employee’s payroll.

With QuickBooks Online Payroll, you can set up and add deductions or contributions to your employees' payroll. In order to add deductions and contributions to the paycheques you send, you must set these up for each employee.

Add for an employee

New employee

1. Go to Employees and then Add an employee.
2. Fill in sections 1- 4, select Edit ✎ next to section #5 Pay.
3. Select the Edit pencil next to Does this employee have any deductions, choose a Deduction or contribution type from the dropdown list, or to create a new one, choose New deduction/contribution.
4. Select which Type or sub-category of the deduction or contribution. You can learn more about each type’s tax implication by selecting the triangle.
5. Enter the Provider name in the box provided. This is how the deduction/contribution will show up on the employee’s paycheque or pay stub.
6. You can now enter the Employee deduction & Company-paid contribution amount per pay period. You can choose $, % or None, as well add an annual maximum to avoid over deducting. If the item is a contribution only, you can choose None for Amount per pay period.
7. Select Ok.

Existing employee

1. Go to the Employees, and then select the employee you want to edit.
2. Select Edit ✎ next to Pay.
3. Select Edit ✎ next to Does this employee have any deductions?.
4. Choose a Deduction/contribution type from the dropdown list, or to create a new one, choose New deduction/contribution.
5. Select which Type or sub-category of the deduction/contribution. Select which Type or sub-category of the deduction or contribution. You can learn more about each type’s tax implication by selecting the triangle (^).
6. Enter the Provider name in the box provided. This is how the deduction/contribution will show up on the employee’s paycheque or pay stub.
7. You can now enter the Employee deduction & Company-paid contribution amount per pay period. You can choose $, % or None, as well add an annual maximum to avoid over deducting. If the item is a contribution only, you can choose None for Amount per pay period.
8. Select Ok.