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Intuit
51 helpful votes

Deductions and contributions

In QuickBooks Online Payroll and Intuit Online Payroll Enhanced, you can setup and track voluntary deductions, mandatory deductions, and company contributions.

In Intuit Online Payroll Full Service Payroll, we'll set up your deductions and contributions, but you can assign them to your employees. Please contact us to setup these items.

Deductions can affect taxes.  They are used for reducing the net, or take home, of a paycheck in order to keep aside funds which will be allocated to Healthcare, Garnishments (a legal order seizing cash or assets) or other non-cash compensation as allowed by Federal, State, or Local tax regulations.

What are voluntary deductions?

Voluntary payroll deductions are amounts that your employees pays out of their paycheck. You can set up and track deductions for:

  • Medical, dental, and vision insurance (both pretax and post-tax)
  • Retirement plans, including 401(k), 403(b), Simple 401(k), Simple IRA 408(p), and SAR SEP 408(k), plus the catchup provisions of each of these. Catchup allows a higher contribution limit for employees aged 50 and over.
  • Flexible spending accounts (FSA), including dependent care FSA and medical expense FSA
  • Cash advance repayments
  • Loan repayments

What are mandatory deductions?

Mandatory deductions include wage garnishments like child support orders and tax levies. As the employer, you would receive a court order for this kind of deduction. If you get a court order for an employee, here's what you do.

What are contributions?

Payroll contributions are company-paid benefits for employees. We'll set up contributions for things like health insurance and retirements plans; you can assign them to different employees.

See also

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