Personal savings account set up Deductions and contributions

Hello there, worldwash. I can see how confusing this can be, especially if this situation is not the usual payroll process.

I'll explain some insights to help you track this in QuickBooks and pay your employee back for the deduction.

In QuickBooks Online Payroll, even though you can set up a deduction item for your employee's payroll savings, you can look for other ways to set it up since we also have to consider that payroll deductions typically reduce taxable income (pre-tax) like for taxes or health insurance. 

Thus, If they want a refund for previous deductions, this would likely be considered as a reimbursement and needs separate accounting procedures. Since payroll deduction is not designed in a way to handle this type of transaction. Also, before you process a refund or a reimbursement to your employee, I recommend consulting a payroll expert or accountant to ensure proper handling while complying with tax regulations.

On the other hand, you can also set up a different direct deposit split account for your employee's savings. See this article for more information: Set up direct deposit for employees.

I'll keep an eye on this thread if you still have follow-up questions about payroll. Have a great day and enjoy your weekend.

Ok, I have an idea now. My only question would be how do I deduct it from his balance on his check?  This was something he wanted to help him save a little bit on the side and its after taxes.   Its like a slush fund so he doesn't spend it.

For example I set up this deduction for $100 a pay check after taxes. he has $2200 saved up.  He wants $2000 from that to take a vacation. How do I adjust that balance on his pay check?

Thank you for your continued engagement, @worldwash! It's great to see you supporting your employee’s savings goals. Let’s jump right into the steps to set this up in QuickBooks Online Payroll for a seamless process.

To adjust the balance and provide your employee with the $2000 for their vacation, we’ll create a reimbursement item in QuickBooks Online (QBO) Payroll.

This approach allows you to add the saved amount to their paycheck while keeping the regular $100 deduction intact. I’ll guide you through the process step-by-step so you can confidently manage this "slush fund" withdrawal.

To create a reimbursement item, follow these steps:

1. Go to Payroll and select Employees.
2. Choose the employee.
3. From Pay types, hit on Edit.
4. Scroll to the Additional Pay Types section and click Reimbursement.
5. Name something like "Personal Savings Reimbursement" by clicking the Edit icon.
6. Once done, choose Save.

Ensure this item is set up as non-taxable since it's a reimbursement after-tax deduction. After creating the reimbursement item, proceed to add it to the paycheck.

Here's how:

1. Go to the Payroll menu and select Run Payroll.
2. When you are on the screen to enter the employee's pay details, add the Reimbursement item.
3. Enter the amount of $2000.
4. Review the Paycheck and ensure the regular $100 deduction is still present.
5. The paycheck will now show the regular pay, the $2000 reimbursement, and the $100 deduction.

Don't forget to manually update your internal records to reflect the new balance in the employee's savings account.

While this approach can effectively handle reimbursement, it's best to seek advice from a payroll expert or accountant to ensure compliance with all tax regulations. 

Furthermore, I've added the following links to assist you with future tasks in QBO Payroll: printing, setting up direct deposit, and adding pay history.

• Print or reprint paychecks and pay stubs
• Set up direct deposit for employees
• Add pay history to QuickBooks Online Payroll

Let us know if you have other questions or concerns about setting up a personal savings fund for your employee in QBO Payroll. Drop a reply to this post or create another one. The Community team is always here to lend you a hand.

Ok great.  Thank you very much Aldren.  Now I still show a balance on his pay stub that still shows he has the same balance. How do I adjust Personal Savings account from his balance.  I ran his direct deposit, and he's pay stub still shows he has that $2000 on his YTD

I got you, Worldwash. Let me route you to the right support to solve this payroll issue.  

Since you've already processed the changes on your employees payroll and there's still an amount showing on his YTD, I suggest calling the payroll support team. They have the specific tools to look into your account securely and offset the YTD amount. You can reach them from Mondays to Fridays, 6 AM to 6 PM PT. Please note that calls will be entertained based on the order they are received.

Here's how we can contact support from your account:

1. Log in to your QBO company.
2. Select Help (?).
3. Click Contact Us and choose a way to connect with us:

• Start a chat with a support expert.
• Get a callback from the next available expert.

In the meantime, if you plan on running, printing, and customizing payroll reports in QuickBooks Online Payroll, please refer to this article: Run payroll reports.

Please keep us posted for more follow-up queries on payroll by commenting on this thread. I'll be around in the Community and we're always available to assist you. Stay safe.