Set up voluntary deductions in QuickBooks Online Core Payroll

QuickBooks Online Payroll Core supports two types of deductions: after-tax deductions and loan repayments.

Add a deduction item

When you add a deduction item for one employee, it becomes available as an option when you add a deduction for other employees.

1. Go to Payroll and select Employees (Take me there).
2. Select your employee.
3. Next to Workplace pension, loan & other deductions, select Edit.
4. Select + Add deduction/contribution.
5. Select an existing Deduction/contribution. Or, to add a new deduction:
   1. From Deductions and contribution, select + Add deduction/contribution.
   2. Select an appropriate option from Deduction/contribution type.
   3. Select an appropriate option from Type.
   4. Add a Description. This is the deduction or plan name, which will show on payslips.
   5. In the Employee deduction section, select either Flat amount or Percent of gross pay. This is how your deduction is calculated.
   6. Select Save.
6. Select Done.

Edit or delete a deduction item

If you ever need to make changes to a deduction item or remove it completely, follow these steps:

1. Go to Payroll and select Employees (Take me there).
2. Select your employee.
3. Next to Workplace pension, loan & other deductions, select Edit.
4. To edit a deduction item:
   1. Select Edit ✎ next to the deduction you want to modify.
   2. Edit the information as needed.
   3. Select Save, then select Done.
5. To delete a deduction item:
   1. Select the delete icon next to the deduction you want to remove.
   2. Select Delete, then select Done.

More help

Looking for guidance on navigating QuickBooks Online Core Payroll? Check out this resource page with how-to guides to help you.