We made a over payment to a member of staff, the staff member repaid the over payment in to our bank account. How do I allocate their repayment ?

Hi there, Edna2019.

If you're using QuickBooks Online Advanced Payroll, we need to set up a deduction category so they'll be made available to be assigned to employees. Here's how to set up a deduction category:

1. Select Payroll Settings and select Deduction Categories.
2. Select Add to add the new deduction category.
3. Enter the name for the deduction.
4. Select whether it will be a pre-tax or post-tax deduction.
5. Click Save.

If it's QuickBooks Standard Payroll, we have two types of deductions: for after-tax deductions and for loan repayments. After-tax deductions are taken out after a statutory deductions such as tax, NI and loans have been taken out from the employee's pay.

Here are some examples of after-tax deductions:

• Recovery of an accidental overpayment in wages
• Repayment of a liability, example a shortfall in a till if you work in a shop
• Buying shares or share options in a business
• Union Fees

To add or customise deductions:

1. Go to Employees.
2. Select the name of the employee.
3. Select Actions, then select Deductions.
4. Search for the deduction you want to add.
5. Save Changes.

You can learn more information about adding or customising deductions in this article.

Please tag me directly if you need further assistance with the process.