Hello there, @BUSHARCH. I'd be glad to help you manage bank charges with your employee.
We can set up a deduction item for this charge, then add it to the employee profile. Also, if you're unsure how this deduction is taxed, I recommend you reach out to your accountant to guide you further and ensure the accuracy of your book.
Here's how to set up a deduction item:
- At the top menu bar go to Lists, then Payroll Item List.
- Click the Payroll Item dropdown, then New.
- Select Custom Setup, choose Deduction, then Next.
- Enter the name of the deduction, and click Next.
- You can also, select the name of the plan administrator (or add it), and the account number. Then select Next. (Optional)
- Choose the applicable Tax tracking type and then select None if the deduction is after-tax.
- Click Next three times. For None tax tracking type, select net pay in the Gross vs. net window, then Next.
- Leave the Default rate and limit fields blank unless these apply to all of your employees. You’ll add the rate and limit when the item is added to the employee profile.
- Then select Finish.
Once everything is set up, you can proceed with adding the item to the employee profile. Here's how:
- A the top menu bar click Employees, then Employee Center.
- Select your employee.
- Click the Pencil icon, then select Payroll Info.
- From Additions, Deductions, and Company Contributions, add the deduction item.
- Enter the amount per period and a limit if applicable.
- Then, select OK.
For reference, you can check out this article: Set up, change, or delete employee-paid payroll deductions.
Additionally, please visit this article if you want to create a payroll summary report to see what you've paid out in your QuickBooks payroll: Create a payroll summary report in QuickBooks.
I'll be around if you need more help in managing your employee and bank charges in QuickBooks Desktop or if you have any other QuickBooks-related concerns. Take care!
