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September 4, 2024
Question

"In & Out" pay entry

  • September 4, 2024
  • 1 reply
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We have an employee who was given a cash "gift" of $100 for helping out with a task in another department. Now I need to make an entry to add $100 to her payroll to calculate the tax impact of the $100, then back out the $100 to avoid giving her an additional amount. Paychex had an easy way of doing that, and the people there always just referred to that as an "in and out" payroll entry.

 

So how do I do that in QB (Enhanced)? I assume I need a taxable pay type to add and a non-taxable deduction item? Is there a more formal (correct?) name for these types rather than "in and out"?  I tried to look on the help documentation, but I don't know what QB calls it so I found nothing.

 

As always, thanks in advance.

1 reply

FishingForAnswers
September 4, 2024

@Deadwood Al  Hmm. Honestly, Reported Tips In and Reported Tips Out seem like they'd pretty much fit this, but I'm not particularly familiar with "Gifts".

 

The former is an addition, but has its own tax tracking type, as I expect you already know. The latter is basically just a deduction from Net Pay, no effect on taxes or tax tracking.