I'd like to ensure that we're on the same page in narrowing down this concern. May I ask what is the deduction all about? Any further details are much appreciated for us to clear this issue out.
In QuickBooks Online, once you've created an after-tax deduction to an employee it will show up on your payroll liability since it needs to be paid.
To settle this, you'll need to determine what is the deduction is intended for. This is because you will only generate a deduction (voluntary deductions, mandatory deductions, and company contributions) if you're going to pay it on behalf of your employee, or the employee needs to pay something for your business.
On the other hand, here's a link that you can refer to how the after-tax deduction work in QuickBooks Online as well as processing an expense to clear out deductions:
Hi, I took £26.00 from an employees payroll, as an after-tax deduction. Now shows as a liability in "Payroll Liabilities: Other deductions".
Hi, sorry I haven't acknowledged, I thought I had replied, but clearly haven't! Many thanks for your response.
Just to clarify, we pay the bill for a mobile phone which the employee has use of. They had added some extras to the bill which aren't our responsibility, so needed to pay £26.00 to pay for them. I deducted £26 as an after-tax deduction. I have checked the maths on the payslip and all is correct. However, it is now showing as a liability, how do I clear this or match the deduction to the liability entry? Many thanks