Hello there, czaryoung.
With QuickBooks Desktop, once you set up the garnishment, an account will be automatically created for the payroll item. Just make sure that deduction is set up correctly.
Here's how:
- Go to Lists located at the top, select Payroll Item List.
- Click the Payroll Item button, and select New.
- Choose EZ Setup or Custom Setup, and then select Next. (For EZ Setup, follow the onscreen instructions.)
- Select the Deduction option, and click Next. Type the name of the payroll deduction, such as Child Support Smith for employee Bob Smith, and hit the Next button.
- Enter agency name in which the liability is paid. If you currently do not know the name of the agency, you can add it later. Then, select Next.
- Click the Tax Tracking Type drop-down arrow, and unless instructed otherwise by your accountant, select None. Then, select Next twice.
- Make sure that Neither is selected in the Calculate Based on Quantity window and click Next. Note: Do not select Hours or Quantity, as those will not calculate the garnishment correctly.
- Choose Net to calculate amount after taxes in the Gross vs. Net window. If you choose Gross, it will calculate the deduction the amount before taxes.
- Enter a Default Rate and Limit (if there is one). Then, click Finish.
I've got this article for more details: Set up a payroll garnishment item.
Reach out to me if there's anything else you need. Thanks.