Deducting medical expense from payroll

Thanks for reaching out to us, @sbo. I'm here to up your payroll deductions and ensure we record them according to your needs.

First, let's set up the deduction items. The steps below will guide you thoroughly through the process.

1. Go to Lists, then Payroll Item List.
2. Click the Payroll Item dropdown arrow, then New.
3. Choose Custom Setup, then Next.
4. Select Deduction, then Next.
5. Enter the name of the deduction, and select Next.
6. Follow the on-screen instructions and enter all the details needed.
7. Pick Finish.

Then, let's add the items to the employee's profile.

1. Still, go to the Employees menu, then Employee Center.
2. Select your employee.
3. Click Edit, then select Payroll Info.
4. From Additions, Deductions, and Company Contributions, add the deduction item.
5. Enter the amount per period and a limit if applicable.
6. Select OK.

For additional information and tips, we can refer to this article: Set up, change, or delete employee-paid payroll deductions.

Also, we can create a payroll summary report within your company file. We can visit this article to learn more about how we can do it in QBDT payroll: Create a payroll summary report in QuickBooks Desktop Payroll.

There you go. If you have more concerns about adding payroll deductions or follow-up questions while working on your employee's paychecks, please comment below. I'll be around to guide you further.

If you are unsure about which liability account to select, consulting with your accountant or financial advisor would be beneficial. They can provide guidance based on your specific business needs and financial structure.