employee purchase from business

Hi there, KeithM.

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:

1. From the Lists menu, select Payroll Item List.
2. Click the Payroll Item drop-down button, then choose New. You could also press CTRL + N.
3. Select Custom Setup, then click Next.
4. 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.
5. Click Finish.

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:

1. From the Employees menu, select Employee Center.
2. Double-click the employee's name.
3. Go to the Payroll Info tab.
4. In the Additions, Deductions, and Company Contributions section, enter the deduction under the Item Name column.
5. Click OK.

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:

https://community.intuit.com/questions/1779590

Please feel free to get in touch with me here for any additional questions, I always has your back. Thanks for dropping in and have a wonderful rest of your week.

I did all the steps to record an employee purchase deduction and it worked great!  The one problem I have is that the payroll liability still shows on my pay liabilities screen.  How do I zero that out?

Did anyone ever find the answer to this question?  I found instructions to create a receivable account for the employee and use that as the liability account for the payroll deduction.  Quickbooks, however does not allow this.  Would love to know what the solution is.  PLEASE

Wouldn't you pay the liability to the company and use those proceeds to "pay" for the inventory item? Because, you need to track the sale of the inventory item by creating an invoice to the employee. The way we handle that at our company is using an "Employee Advance" account - whether they take the advance or simply deduct the amount from their paycheck to buy goods from the company and I use proceeds to "pay" for the goods from the company.

I have the same issue.  I need to zero out the liability account. Any ideas how to do this in Desktop?

Thanks,

Karen