Learn how to add or edit a deduction or contribution in your Intuit Online Payroll Full Service, QuickBooks Online Payroll Full Service, QuickBooks Online Payroll Core, QuickBooks Online Payroll Premium, or QuickBooks Online Payroll Elite.
Paycheck deductions and contributions
Paycheck deductions (besides taxes) can be applied toward retirement plans, insurance plans, and Health Savings Accounts (HSAs). Your company can also make paycheck contributions to employee insurance and retirement plans.
The difference between a contribution and a deduction
A contribution is company-paid, whereas a deduction is employee-paid.
You can assign deductions and contributions that have been set up for your company, like health insurance and retirement plans, to an employee profile.
QuickBooks Online Payroll (all versions)
- Go to the Workers or Payroll menu, then select Employees.
- Select the employee's name.
- Select Edit ✎ next to Pay.
- In the deduction section, select + Add a new deduction or + Add deductions.
- From the Deductions/contributions ▼ dropdown menu, choose New deduction/contribution.
- Choose a Deduction type and Type from the small arrow ▼ icon.
- Enter Provider name(appears on paycheck).
- From the Amount per pay period ▼icon, choose $ amount or % of gross pay and enter the $ amount or percentage. Do the same for the Company-paid contribution as applicable.
- Select, then Done.
Edit an existing deduction or contribution.
- Under Does this employee have any deductions?, Select the Edit ✎ icon next to the deduction you want to edit.
- Make any necessary changes.
- Select OK, then Done.
Intuit Online Payroll Full Service
- Select the Employees tab.
- Select the employee's name in the Employees list.
- Select Edit in the Deduction and contributions section.
- Select Add new deduction or contribution.
- Select an item from the Name list in the Assign a new deduction or contribution window.
- Enter the requested info for the type of deduction or contribution selected.
- Select Save. The info is stored in the employee's profile and displayed on the Deductions and contributions page.
Select a taxable or pretax deduction
Select the option that applies to this insurance plan, as defined in your plan documents. If you don't have your plan documents, contact your plan administrator.
If you select a different option than in your plan documents, you might be subject to penalties.
What do the options mean?
- Taxable insurance premium — select this if the premiums will be taken out of your employee's net pay (after taxes). Taxable employee contributions are not reported on Form W-2.
- Pre-tax insurance premium — select this if the premiums will be taken out of your employee's gross pay (before taxes). On Form W-2, employee pretax contributions (plus company contributions, if there are any) are reported in Box 12, but excluded from federal wages and most state wages. If the employee's pretax contributions are taxable at the state or local level, we include the amount in taxable wages.