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Gross up a paycheck in QuickBooks Desktop Payroll

When a paycheck must have a specific net amount, QuickBooks Desktop Payroll allows you to gross up the amount on the employee’s paycheck. Learn how by following the steps below.

Note: This is only available to QuickBooks Desktop Payroll Enhanced and Assisted users.

When grossing up a paycheck, consider the following:

  • The company can pay the employee portion of the taxes. You can choose to create a deduction item for the tax paycheck or choose not to charge the employee.
  • Adjusting the Federal and State Income tax could affect your year-end tax filing. Consult your employee before making changes.

Gross up a paycheck

  1. Go to Employees, then select Pay employees. You may choose either Scheduled or Unscheduled Payroll.
  2. From the Enter Payroll Information window, put a check beside the employee whose paycheck you want to gross up.
  3. Select Open Paycheck Detail….
  4. In the Preview Paycheck window, enter a salary or bonus payroll item with no rate in the Earnings section. Make sure to remove any other payroll items listed since using any other type of item doesn't work.
  5. Put a check in the Enter net/Calculate gross checkbox. Although QuickBooks calculates and deducts the appropriate taxes, selecting Enter net/Calculate gross allows you to give employees the entire amount as their net pay.
  6. Select Save & Close, then follow the procedure to pay employees.

What if I want to use an hourly, piece work, or addition item as the Earning item?

You need to use the trial and error method to calculate the gross.

  1. In the Earnings section, enter a gross amount that is higher than the desired net. Press the Tab key on your keyboard to calculate the net.
  2. Adjust the gross amount under Earnings until you get the desired net amount.

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