Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Connect with and learn from others in the QuickBooks Community.
Join nowDue to the corona virus lock down, our company has no income but still want to give $100 salary per paycheck. But after entering the proper amount in the employee payroll info's annual rate, the paycheck shows the company have to pay CA and Federal income tax and 401K deduction and the net pay is negative
How do you enter semimonthly pay of only $100 per employee?
Solved! Go to Solution.
Hello there, @jkan.
Thanks for visiting the Community today. I can imagine the impact this lock-down is having on small business owners like you. I'm here to help you enter a semi-monthly pay of only $100 per employee.
First off, you'll need to set up tax exemption to your employees so it won't calculate Federal and State taxes.
Here's how:
You may repeat these steps to exempt each of your employees. Once done, set-up a semi-monthly payroll in the Payroll Center. Here's how:
Your payroll schedule will now show in the table under Create Paychecks. Follow the steps in this link to assign it to your employees and run payroll as normal.
Let me know if there's anything else I can help you with. I'm just around to give you a hand. Stay safe.
Hello there, @jkan.
Thanks for visiting the Community today. I can imagine the impact this lock-down is having on small business owners like you. I'm here to help you enter a semi-monthly pay of only $100 per employee.
First off, you'll need to set up tax exemption to your employees so it won't calculate Federal and State taxes.
Here's how:
You may repeat these steps to exempt each of your employees. Once done, set-up a semi-monthly payroll in the Payroll Center. Here's how:
Your payroll schedule will now show in the table under Create Paychecks. Follow the steps in this link to assign it to your employees and run payroll as normal.
Let me know if there's anything else I can help you with. I'm just around to give you a hand. Stay safe.
The proper rate for bimonthly pay for $100 gross is an annual salary of $2400. There will be state and local taxes but they are based on the current salary you enter of $2400 , not on previous rate.
If you want them to receive a net $100 per paycheck you have to gross it up such that the gross minus taxes equals $100.
If everyone is getting the same an easier way might be to add a per diem rate of $100.
Caution. This $200/month you want to give out might affect, in some states, the amount of UC they receive and could result in them actually receiving less.
You cannot just "gift" them the $100 twice per month as a non-expense as there are stupid IRS rules that get in the way.
BUT -- an individual who is not your company or not the owner could gift them this non deductible non taxable stipend. Any individual can gift any other individual quite a substantial amount annually before gift tax comes into play.
For paid leave I need to turn off local withholding of the WBFA taxes in Oregon. All I see on the Other tab is delete. Nothing that says don't withhold. Do I just have to delete and then restore if they come back under normal payroll later?
Hello WP61,
Yes, we can Delete the payroll tax item in the Other tab and restore it.
Though we can do that within QuickBooks, I'd still recommend reaching out your accountant about this. They know what's best for you and your business setup.
Let me know if you need anything else.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.