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October 8, 2024
Question

Can I deduct money from upcoming direct deposit paycheck? I gave the employee an advance and want to deduct that amount from their direct deposit.

  • October 8, 2024
  • 1 reply
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I can't find a way to deduct money from an upcoming direct deposit paycheck.  I paid the employee $100 4 days early and now need to deduct that from their upcoming deposit.

1 reply

October 8, 2024

Yes, it's possible to deduct money from the upcoming direct deposit paycheck, Aaron. Let me guide you through.

 

First, set up additional deductions in the employee's deduction and contribution history to enable this in the paycheck. Here’s how:

 

  1. Go to the Payroll menu, then select Employees.
  2. Select your employee. From Deductions & contributions, select Start or Edit.
  3. Click + Add deduction/contribution.
  4. In the Deduction/Contribution Type dropdown menu, select Other Taxable Deductions. Then, in the Type dropdown, choose Cash Advance Repayment ( add deduction name, such as Cash Advance Repayment).
  5. Select Flat amount
  6. Enter the amount to deduct from your employee’s paycheck.
  7. When finished, select Save.

 

Proceed to create and run your payroll. Once done deducting, you can remove the amount from the item so it doesn’t keep deducting from the employee's paycheck.

 

You  can check this article for detailed steps in making changes to the deduction item: Set up, change, or delete employee-paid payroll deductions.

 

Additionally, you can refer to this article for guidance on managing your forms and taxes: Pay and file payroll taxes and forms electronically.

 

Keep me posted if you have other questions about payroll concerns. I'll be around to help. Take care.