How should I record an employee buying in asset from the company through payroll deduction. I have a trailer that I bought in February that has been set up with a depreciation account also.

Hello, @autotekk189.

Here's the quickest way to record an employee's purchase of an asset from the company through payroll deduction in QuickBooks Online (QBO).

 First, create a deduction payroll item. Here's how:

1. Go to the Gear icon and select Payroll Settings.
2. Select Deductions/Contributions and click Add a new deduction/contribution.
3. Choose Deduction and enter a name for the deduction item.
4. Select a liability account to track the deduction and click OK.

Next, you need to Set up the deduction for the employee:

1. Go to the employee's profile and select the Pencil icon to edit.
2. In the Deductions/Contributions section, click the pencil icon to add a new deduction.
3. Choose the deduction item you created and enter the amount or percentage of the employee's pay to deduct.

Then, Record the asset purchase:

1. Create a journal entry to record the sale of the asset to the employee. Debit the employee's asset account and credit the company's asset account for the value of the asset.
2. Create a bill for the employee for the value of the asset. Use the employee's name as the vendor and the asset account as the account.
3. Use the created deduction item to pay the bill, reducing employee liability and closing asset and depreciation accounts.

Moreover, with regard to closing the asset and depreciation account. I recommend consulting this with your accountant to ensure accuracy when recording asset disposals and depreciations in QuickBooks Online.

I will include this article in case you need to run a paycheck after resolving the current issue: Create your paychecks and send your payroll.

If you have questions about recording an employee's purchase of an asset through payroll deduction in QuickBooks Online, please let us know. Take care!

I think we are missing a step here somewhere. When I click on payroll settings I do not see a selection for deductions and contributions

 First, create a deduction payroll item. Here's how:

1. Go to the Gear icon and select Payroll Settings.
2. Select Deductions/Contributions and click Add a new deduction/contribution.
3. Choose Deduction and enter a name for the deduction item.
4. Select a liability account to track the deduction and click OK.

Let me provide clarifications about creating a payroll deduction item, @autotekk189. 

In QuickBooks Online (QBO), we can set up a deduction item by the Employees page or by pulling up each employee. 

To set up deduction item on the Employees page, follow the outlined steps: 

1. Go to the Payroll menu and choose Employees.
2. Click the Edit payroll items tab.  
   
3. Select the New payroll item dropdown menu and choose Deductions & contributions. 
   
4. Pick a Type, Subtype, and Description of the deduction. 
5. Then click Create.  
   

To assign the deduction item to your employees, follow the steps:

1. Pull up the specific employee. 
2. From the Deductions & contributions section, hit Edit.  
3. Choose +Add deduction/contribution, and select the deduction item you created. 
4. Fill out the necessary information. 
5. Click Save and then Done.  

Alternatively, we can directly create the item by pulling up the specific employee. Perform the steps below:  

1. Choose the employee. 
2. Go to the Deductions & contributions field and select Edit. 
3. Click +Add deduction/contribution, and choose Add deduction/contribution. 
4. Enter the details from the required fields. 
5. Hit Save and then Done. 

Additionally, I'll add this guide about editing your employee's information in QBO: Edit or change employee info in payroll. 

The Community space is open 24/7 if you have additional questions about managing payroll deductions. Don't hesitate to comment below. Keep safe!