Glad to have you in the Community, mwells.
The pre-tax and after-tax options will only show when setting up the payroll item for the first time. To assign the correct taxability, let’s create a new pay type and then assign it to your workers.
Here’s how:
- Tap the Workers tab on the left panel and select Employees to open the My payroll page.
- From there, double-click on the employee you’re working on to view its profile.
- Click the Pencil icon for Pay to see the Does New have any deductions section.
- Hit the Add deductions link to enter a new item.
- On the next page, follow the instructions to add the new deduction.
- Then, make sure to mark the radio button for Taxable or Pre-tax.
- Press the OK button to save it.
Follow the same procedure above to input another pay type (Taxable or Pre-tax). Once done, let’s assign the deduction to the employees.
Here’s an article that will walk you through the step by step process. To view the details, proceed directly to the Set up a new deduction item to the employees' section and choose QuickBooks Online Payroll: How do I?
If you’ll no longer use the previously created payroll item, you have the option to delete it. Let me show the steps.
- Go to the Workers tab on the left panel and select Employees to open the My payroll page.
- From there, double-click on the employee you’re working on to view its profile.
- Click the Pencil icon for Pay to see the Does New have any deductions section.
- Hit the Trash bin icon beside the deduction item and then choose Yes to confirm the action.
Let me know if you have further questions about QuickBooks. I’m more than to help. Enjoy the rest of the day.