creating a zero dollar net paycheck

Joy3 · ‎January 09, 2019

Can I create a paycheck with a zero net amount in QuickBooks Desktop Pro 2019?

Angelyn_T · ‎January 09, 2019

Welcome and thank you for posting here in the Community, @Joy3.

It's my pleasure to help create a paycheck with zero net amount in QuickBooks Desktop (QBDT).

To zero out the net amount, you may need to create a deduction item under the Other Payroll Items to offset the net amount.

First create the paycheck:

Go to Employees at the top menu bar.
Select Payroll Center.
Click on Pay Employees.
Select Start Unscheduled Payroll.
Select an employee and click Continue.
Click on Open Paycheck Detail.
Fill in the necessary information under Earnings and Rate in the Preview Paycheck page.

Next, create a deduction item under Other Payroll Items to offset the amount.

In the Other Payroll Items column, click the drop-down arrow and select Add New.
Select Deduction, and click Next.
Type Net pay offset in the Enter name for deduction window, and click Next.
In the Agency for employee-paid liability window, change the Liability Account to the account affected or correct account.
Click Next.
Select None from the Tax tracking type drop-down list, and click Next.
Make sure that no taxes are selected in the Taxes section, and click Next.
Select Neither in the Calculate base on quantity window, and then click Next.
Select net pay in the Gross vs. Net window, and then click Next.
Click Finish. You've now created the offset payroll item.
In the Rate column, enter the amount in the Net pay or ChekAmount field.
Hit the Tab key to step off the Other Payroll Items field. The amount on the Net Pay field in the Employee Summary section should be changed to zero (0).
Make sure that Use Direct Deposit checkbox is not selected.
Click Save and Close.

After following the steps provide above, you'll be able to create a paycheck with zero net amount. For additional reference, you may check this article: Zero out the paycheck.

Feel free to add a comment below if you have any other paychecks concerns, we're always here to help. Have a wonderful day ahead!

View solution in original post

Angelyn_T · ‎January 09, 2019

Welcome and thank you for posting here in the Community, @Joy3.

It's my pleasure to help create a paycheck with zero net amount in QuickBooks Desktop (QBDT).

To zero out the net amount, you may need to create a deduction item under the Other Payroll Items to offset the net amount.

First create the paycheck:

Go to Employees at the top menu bar.
Select Payroll Center.
Click on Pay Employees.
Select Start Unscheduled Payroll.
Select an employee and click Continue.
Click on Open Paycheck Detail.
Fill in the necessary information under Earnings and Rate in the Preview Paycheck page.

Next, create a deduction item under Other Payroll Items to offset the amount.

In the Other Payroll Items column, click the drop-down arrow and select Add New.
Select Deduction, and click Next.
Type Net pay offset in the Enter name for deduction window, and click Next.
In the Agency for employee-paid liability window, change the Liability Account to the account affected or correct account.
Click Next.
Select None from the Tax tracking type drop-down list, and click Next.
Make sure that no taxes are selected in the Taxes section, and click Next.
Select Neither in the Calculate base on quantity window, and then click Next.
Select net pay in the Gross vs. Net window, and then click Next.
Click Finish. You've now created the offset payroll item.
In the Rate column, enter the amount in the Net pay or ChekAmount field.
Hit the Tab key to step off the Other Payroll Items field. The amount on the Net Pay field in the Employee Summary section should be changed to zero (0).
Make sure that Use Direct Deposit checkbox is not selected.
Click Save and Close.

After following the steps provide above, you'll be able to create a paycheck with zero net amount. For additional reference, you may check this article: Zero out the paycheck.

Feel free to add a comment below if you have any other paychecks concerns, we're always here to help. Have a wonderful day ahead!

Joy3 · ‎January 09, 2019

Thank you so much for the detailed information!

PSchulz · ‎January 19, 2019

I am getting a warning:

At least one paycheck has no earnings or additions

Using:

S-Corp Owners Health in additions and then subtracting it out in company summary

Doesnt allow me to save the checks

JenoP · ‎January 20, 2019

Thanks for joining us here, PSchulz.

It's possible that the S-Corp item wasn't created as an addition item. Let's go to your Payroll Item List and check the Type column to verify. Here's how:

Go to the List menu and select Payroll Item List.
Look for the S-Corp item and make sure it says Addition under the Type column.

In case the item isn't set up as an addition item, you will need to create another one and select Addition. Then, use it in the Other Payroll Items box to create the zero paycheck.

Visit us again if you have follow-up questions. I'll make sure to get back here and help you again.

PSchulz · ‎January 23, 2019

It is under company contribution. if I add to addition it doesnt zero out

JenoP · ‎January 23, 2019

Thanks for getting back to me, PSchulz.

We're you able to create a new addition item and use it in the Other Payroll Items section? I would recommend contacting our Payroll Support Team so they can double-check why it's not letting you create a zero paycheck.

Here's how:

Open this link: https://payroll.intuit.com/support/contact/?infosrc=qs&service=16.
Click Account, then click View Contact Info.

You're always welcome to visit us again if you have other payroll questions.

ickus98 · ‎February 27, 2019

No because it won't let me create a zero paycheck getting error message

Anonymous · ‎February 27, 2019

Hi there, @ickus98,

Thanks for you time checking this with us today. I can add a bit more about creating zero net paycheck in QuickBooks Desktop.

There are a few things you need to do to create a zero net paycheck. Here's how:

Step 1: Set up a dummy Addition Item

Go to the Lists menu.
Select Payroll Item List.
Right-click anywhere and click New.
Select Custom Setup then click Next.
Select Addition and click Next.
Enter the name of the item.
Click Next twice.
In the Tax tracking type drop-down, click None.
Click Next three times.
Choose net pay and click Next.
Click Finish.

Step 2: Create a dummy Deduction Item

Click the Lists menu and select Payroll Item List.
Right-click anywhere and click New.
Choose Custom Setup and click Next.
Click Deduction then Next.
Enter the deduction name and click Next twice.
In the Tax tracking type, select None.
Click Next three times.
Select the net pay radio button.
Click Next then Finish.

Step 3: Create the payroll check.

Click the Employees menu.
Choose Pay Employees.
Select Unscheduled Payroll.
Update the date and click the employee name.
Click the Open Paycheck Detail button.
Remove all the items on the Earnings section.
In the Other Payroll Items section, remove any addition or deduction items.
Add the dummy addition and deduction item you've just created.
Enter a sample amount. (Example: 100)
Make sure the Check Amount is zeroed out.

That should help you create the zero net check, @ickus98.

Please let me know if you need further assistance. I'll be more than happy to get back to you and make sure everything's fine on your end. Have a great day!

ickus98 · ‎March 01, 2019

None of this helps me with adding salary to officer of an s corp health ins after year end I created the new account as described in the help menu did everything I had to created check and the stupid thing won't let me record it because it is zero I used to be able to do this is there something in 2017 premier that stops me from doing it I'm going crazy is it something stupid like a preference that has to be changed please thanks for your help but this is my dilema

Anonymous · ‎March 01, 2019

Hello ickus98,

Since you're still getting an error after following the steps above, we encourage you reaching out to our Payroll Support Team. They'll investigate the cause of this issue and resolve it.

To reach us, please click on the Help menu and select QuickBooks Desktop Help F1. Enter Zero Net Paycheck in the search field and click on Contact Us.

If there's anything else that we can help you with, please post them here. We'll be glad to help you.

PAT0511 · ‎May 24, 2021

I pay wages, not salary. So how do I enter in a zero dollar paycheck for a week that the employee didn't have a paycheck?

PAT0511 · ‎May 24, 2021

I got the paycheck done with a zero balance thanks to you, but it is still showing that paycheck as overdue. How do I get rid of that on my create paycheck screen?

Giovann_G · ‎May 24, 2021

Hi there, PAT0511.

I can help you fix the overdue status of your paycheck.

You have to change the date of your payroll schedule. This allows you to manage your pay schedule again. I'll show you how.

Click the Employees menu at the top.
Select Payroll Center.
In the Pay Employees tab, highlight the payroll schedule showing overdue status.
Click the Payroll Schedules drop-down arrow and choose Edit Schedule.
Update the dates of your pay period end date and paycheck date to the future date.
Hit OK once you're done.

For more info, here's a helpful material about setting up a payroll schedule: Set up and manage payroll schedules.

In addition, you can check this guide here if you need to edit the pay period date on paycheck created incorrectly: Incorrect pay period dates in QuickBooks Desktop Payroll.

Let me know if you have further questions about paycheck and payroll processes. I'll be around to help you. Have a great day!

DavePetz · ‎September 03, 2021

We issue zero-dollar paychecks for employees who get a bonus but owe it back against an employee advance. It's easy enough to create the paycheck, the paystub for which shows the income, the taxes, and the final deduction for the advance that leaves the net pay to be zero. I was doing a reconciliation of the advance account, and I noticed that the impact of the zero dollar check isn't hitting anywhere in QB that I can find - either on the earnings side (as a Bonus, like it says on the paystub) or the Advance account. Am I not looking in the right place? I've run all kinds of employee/payroll reports, but don't see anything.

LieraMarie_A · ‎September 03, 2021

You're looking in the right place, @DavePetz.

When reconciling an account, only the net pay amounts will show on the Reconciliation window. It won't display its details, like the bonus and advance amounts. You can only find the advance and zero-dollar paychecks you created.

I'd suggest running the Payroll Item Detail report, This gives you a detailed info of your employee's payroll.

Go to the Reports menu.
Hover on Employees & Payroll.
Choose Payroll Item Detail.

On the other hand, if you can't find the items, make sure to update your payroll tax table. Here's how:

Go to the Employees menu and select Get Payroll Updates.
Check the Download Entire Update checkbox.
Select Download Latest Update.

Once done, run the report again. If you can't still find those payroll items, you may consider deleting and recreating the paycheck.

Furthermore, there are various payroll reports available in QuickBooks that give you snapshots of different areas of your business. You can also customize them and focus on the details that matter the most to you.

Please let me know should you need further assistance in customizing your reports. I'm always available to help.

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