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:
- Set up and collect garnishments
- Set up a retirement plan
- Set up and manage payroll items for your insurance benefit plan
- Set up a Flexible Spending Account (FSA) payroll item
- Set up a Health Savings Account (HSA) payroll item
- Set up and repay employee advances
Select your product below.
|Note: Not sure which payroll service you have? Here's how to find your payroll service.|
Edit a payroll deduction item
If you want to change the employee’s deduction info such as amount, percentage, or its description, follow the steps for your product.