How to create a payroll check with the net amount set?

ZN1 · ‎August 23, 2023

I have a client that wants the employee to be paid set amount (1200, 1000, 900, etc) after taxes. They are paid by salary. Is there a way to accomplish this in Quickbooks Online.

Kurt_M · ‎August 23, 2023

We're pleased to have you here today, @ZN1.

We recognize the urgency of this matter, and the Community Team's priority is to provide compact and concise information to help you get through this situation. Reading your post, you may want to check all the supported pay types and deductions available in QuickBooks Online (QBO).Please be aware that it's the program's basis on whether it's taxable, not taxable, or not. An example is adding a new pay item as Nontaxable Per Diem in your employee setup. However, please note that it still needs approval, and it will depend on the reason why you're adding it. If you wish to continue with this method, we'll write down the steps:

Access your QuickBooks Online company.
On the left navigational bar, go to the Payroll tab and select Employees.
Locate the employee, and then click Edit in the Pay type section.
Scroll down to Additional pay types, and then tick the box beside Nontaxable Per Diem.
Enter the recurring amount, and then click the Save button.

If you're unsure of the steps we've mentioned, it's best to consult your accountant so they can provide another way to handle this type of situation. If you don't have an accountant, we can help you find one. Feel free to visit this page to find an accountant for your business: Find a QuickBooks ProAdvisor.

In case you're still not sure what to choose and that you don't want it to be included in your taxes, you can also consider writing a check for that specific employee. See this page for more details: Create and record checks in QuickBooks Online.

Furthermore, we've got these articles to help you manage employees, invite them to view their paystub, and ensure your data stays accurate inside the program:

Please don't hesitate to comment below if you need further assistance with this, @ZN1. We are aiming to improve your experience using QuickBooks. You can also visit the Community space anytime if you have additional questions or a task you'd like to accomplish inside the program. We've got you covered. Take care, and have a nice day!

ZN1 · ‎August 24, 2023

I do want the net amount taxed. It is like the after the fact payroll in the Desktop. You put in the net amount you want and desktop creates the gross amount and taxes to get the net amount you want.

Adrian_A · ‎August 24, 2023

Hello ZN1,

I'm here to help achieve your goal of creating payroll checks with the taxable net amount.

We can create a paycheck with a specific net amount as a bonus check. You can follow the steps I'll laid out below as your guide:

From the Payroll tab, select Employees.
Click the Run Payroll drop-down, then select Bonus only.
Select As net pay.
Click Continue.
Enter the pay date.
Select your employees, then enter their net bonus amounts.
If you want to use the supplemental tax rates or add a pay period, click Payroll options.
Select Preview payroll, then click Submit payroll.

Whenever you have concerns about managing your employees and their paychecks, you can pin these articles as your guidance:

You can always post in the forum if you have other payroll concerns.

zencandi · ‎September 26, 2023

If you set it up as bonus only that means the tax rates will be ridiculous. Is there no way to do this on a normal payroll check?

AileneA · ‎September 26, 2023

Hello, zencandi.

Thank you for reaching out to the Community. Let me share some insights about paying an employee bonus in QuickBooks Online and their tax implications. It's important to note that bonuses are categorized as supplemental wages, which means that they are subject to federal income tax, Social Security tax, and Medicare tax.

Depending on your state, you may also be subject to state and local taxes. It's always a good idea to factor in these taxes when budgeting for your bonus payments or calculating your take-home pay.

However, If you're looking for a way to avoid adding taxes to your employees' paychecks, there's a workaround, set up your employee payroll and mark the Reimbursement or Nontaxable Per Diem under Additional pay types. These are considered nontaxable, so you won't need to worry about adding any extra taxes.

You can also check this article to learn more about paying a bonus check to the employee: Pay an employee bonus.

I've also included an article that you can read to help track your employee and payroll expenses in QuickBooks: Run payroll reports.

I'm happy to answer any other questions regarding taxes or finances. Don't hesitate to reach out. Have a great day!

Rainflurry · ‎September 27, 2023

@zencandi

You can use a gross-up payroll calculator to determine what gross pay will produce the desired net pay.

https://www.surepayroll.com/resources/calculator/payroll/gross-pay

neboatwright · ‎April 25, 2024

Did you find a solution to this?

justjane320 · ‎February 25, 2025

I would like an answer to this as well.

JeraldR · ‎February 25, 2025

Hi there, @justjane320.

If you want to pay your employee an exact net pay amount, you can create a gross-up paycheck in QuickBooks Payroll. You can create the gross-up as a separate bonus check. I'll show you how:

Access the Payroll section in QuickBooks and select Employees.
Use the Run Payroll drop-down menu and choose Bonus Only.
Select As net pay option and hit Continue.
Specify the date on which the bonus will be paid.
Select your employee(s), then enter their net bonus amounts.
If you want to apply supplemental tax rates or add a pay period, use the Payroll options to adjust settings.
Click Preview Payroll to ensure all details are correct, then Submit payroll.

For more information and detailed steps on how to create a paycheck with a net pay amount, check out this article: Gross up a paycheck.

Additionally, you might want to take a look at this article on how to check out your payroll totals, including details on employee taxes and contributions: Create a payroll summary report in QuickBooks.

For more queries about creating a payroll check, ping me back to this thread. We ensure that you are assisted well.

Topics

Training

Community

Resources

How to create a payroll check with the net amount set?