It's a pleasure to have you here in the Community. I'm here to help you set up the payroll deduction for this employee.
The following steps will guide you through the step-by-step process to create this payroll item:
From the Lists menu, select Payroll ItemList.
Click the Payroll Item drop-down button, then choose New. You could also press CTRL + N.
Select Custom Setup, then click Next.
Follow the on-screen instructions on the corresponding pages: - Payroll item type: Select Deduction. - Name used in paychecks and payroll reports: Enter a name for the deduction. - Agency for employee-paid liability: Leave the Agency Name and Agency Identification Number fields blank. Also, QuickBooks will auto-fill the Liability account field for you. - Tax tracking type: Make sure to select None if this is a non-taxable deduction. If it is, then select the appropriate type. - Taxes: Just click Next. - Calculate based on quantity: If this isn't based on quantity and hours, then choose Neither. - Gross vs. net: Select net pay to ensure that this won't affect the gross wages that'll appear on your forms. - Default rate and limit: You can leave the Rate and Limit fields blank.
From there, you'll need to add this item to the employee's payroll information. Let me walk you through the steps on how to do this:
From the Employees menu, select EmployeeCenter.
Double-click the employee's name.
Go to the PayrollInfo tab.
In the Additions, Deductions, and Company Contributions section, enter the deduction under the Item Name column.
That's it! For additional insight about this, I recommend following this article: Set up payroll item
However, before you go, if you also want to create an invoice for the employee then apply this deduction to it I recently answered a similar question. You may find it helpful. The link below will lead you to my answer: