Why is my net pay greater than my gross pay? I have negative (credit) deductions

Hello Tom-handlerecycl, 

Welcome to the Community page, 

Can we ask what payroll you are using in Quickbooks is it Advanced payroll or Standard payroll? 

I got the same question, it's on standard payroll. I believe it's related to paying a lot of tax earlier in the tax year, but how would my company get hold of the money to pay the extra income? Does the HMRC refund it somehow into my company's account? I'd rather not pay more and sort it all out with the HMRC at the end of the tax year. Can this be configured?

You're correct that this may be relevant to paying a lot of tax earlier or the P45 information, @SteffenP.

This is the reason why the net pay is higher than the gross pay. Since this is the case, I suggest contacting our Care Support team to take care of this and investigate thoroughly. They have tools to pull up your account in a private session.

Here's how:

1. Sign in to your QuickBooks Online company.
2. Go to Help (?).
3. Click the Payroll button below.
4. Select QuickBooks Standard Payroll Hub.
5. If you want to contact support directly, type ‘Chat’ in the ‘Type Something’ field and use Enter. 
6. Choose Contact a human.
7. Hit Live chat/Call me back.
8. Enter your question, then select Continue.
9. Choose a way to connect with us:

You can also chat with us through this link: QuickBooks Online Payroll.

On the other hand, yes, we can configure your tax setup. You may want to review and correct your tax setup for the allowances and some tax information. This way, you won't have to pay more while using QuickBooks and directly contact HMRC to sort it out. You can check this article for further directions: Add and update an employee record in QuickBooks Online.

I've also added these topics below about Nest requirements, troubleshooting the error message, imagining employees, and other relevant articles. 

• QuickBooks Online Standard Payroll Hub
• Automated Nest Submission in QuickBooks Online Standard Payroll

Please reply in this post if you need further assistance or other payroll concerns. We're always here to lend a hand. Stay healthy.

The advice from payroll support was that this is how it's meant to work, but I wasn't convinced. I have solved the problem by reducing the "tax paid" number in the P45 configuration so that the payslip does not show a rebate anymore. The extra tax will then get sorted via the personal tax return.

I celebrated too early - it's the next payroll and the negative deduction is back. I think my next step will be to move to FreeAgent...

I appreciate you for getting back on this thread, @SteffenP. I'll route you in the right direction of support to help you fix this query.

I understand that you've already reached out to them for assistance. However, I'd recommend contacting our QuickBooks Online Payroll Support team again. This way, they can pull up your account in a safe environment and help you with the best process to handle these tax deductions.

Furthermore, please check our available hours to ensure we address your concern promptly.

In the meantime, you might also want to browse our help page to guide you with our QBO tasks: QBO help articles.

I'll be around if you need further assistance with your payroll taxes. I'm very eager to help. Take care always! 

i have the same issue was told its a rebate .... why would a company pay a rebate? how is this then paid back to the company? im seriously looking at changing the software

Hi Arthur,

We want to help you with your concern about the rebate. However, we need more information about it to provide the correct resolution and sort this out.

Can you share more details about the employee affected by the rebate? Does the employee have two jobs? This way, we can check why you're getting that outcome. If you could provide some screenshots, it would greatly help.

In the meantime, you can check this article for additional guidance on setting up payroll in QuickBooks: Get set up for QuickBooks Online Standard Payroll.

Please know that you're always welcome to post questions in this space. Have a great day ahead.