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December 6, 2022
Question

Deducting 10% as a donation from an employees paycheck

  • December 6, 2022
  • 1 reply
  • 0 views

I do the payroll for a private school and we have an employee that wants to have 10% of her paycheck be donated to our scholarship fund through a paycheck deduction.  Is this possible and how do I set that up?  We use classes so I need the class to be "Fundraising:Scholarship Fund".  Thanks.

1 reply

December 7, 2022

Thank you for dropping by here in the QuickBooks Community, @MLYoung33.

 

You can set up a payroll item for the donation and apply it to your employee's paycheck. Let me guide you through the process.

 

  1. Open your QuickBooks Desktop company file.
  2. Go to the Lists menu, then select Payroll Item List.
  3. From the Payroll Item drop-down, click New.
  4. Select Custom Setup and choose Next.
  5. Choose Deduction for the payroll item type. Then, click Next.
  6. Enter the name of the deduction (Donation) and select Next.
  7. Select the name of the agency to which the liability is paid. Then, choose the Liability account (Fundraising:Scholarship Fund). If you haven't created one yet, click the drop-down and select Add New
  8. Choose the tax tracking type and click Next twice. If you're not sure what to select for the tax tracking type, I suggest seeking help from your accountant.
  9. In the Calculate based on quantity section, select Neither. Then, choose gross pay.
  10. Enter the percentage of the deduction (10%), then select the One-time limit. Then, click Finish.

 

I'm adding this article for more guidance: Set up payroll items.

 

That's it! If you need more clarification about this, don't hesitate to reply in this thread. The Community team and I are always here to help you again.

 

You may also want to run and customize payroll reports in QuickBooks Desktop. This will help you view useful information about your business and employees.

 

Wishing you continued success!