Set up, change, or delete employee-paid payroll deductions
SOLVED•by QuickBooks•4218•Updated 1 month ago
Learn how to add deductions your employee needs to pay each payday in QuickBooks Online Payroll and QuickBooks Desktop Payroll.
Payroll isn’t just about paychecks anymore. Sometimes employees need to pay for things like health insurance, retirement contributions, uniforms, tools, or dues. Maybe you gave your employee an advance on their paycheck and they need to pay it back.
You can set up these benefits or deductions in QuickBooks Payroll. They’ll come out of your employee’s pay each payday.
Set up a new deduction item
In QuickBooks Payroll, you can set up pre-tax or after-tax deduction items. If you aren’t sure how the deduction is taxed, talk to your plan administrator or an accountant. You can use the steps below to set up general deductions like uniforms, tools, commuter benefits, or miscellaneous.
To set up specific deduction items like insurance, HSA, FSA, retirement, garnishments, or advances:
From Deductions & contributions, select Start or Edit.
From the Deduction/contribution ▼ dropdown, select + Add deduction/contribution.
From Deduction/contribution type, select Other Deduction. If you need to set up a pre-tax item that isn't listed like commuter benefits, AFLAC Accident or Cancer, etc, select Health Insurance.
From Type, select Other after tax deductions. If you need to set up a pre-tax item that isn’t like commuter benefits, AFLAC Accident or Cancer, etc, select Vision Insurance. Then after Step 7, select Pre-tax insurance premium.
Add a Description. This is the deduction or plan name. Appears on paychecks.
Select how your deduction is calculated. Then enter the amount or percentage.
Select Save, then Done.
Check out this video starting at 3:42 to see how to set up employee deductions.