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Speedster70
October 12, 2019
Solved

Negative Net Paycheck? Is it even doable?

  • October 12, 2019
  • 1 reply
  • 0 views

Howdy,

 

So my boss wants to take a lump 10K of federal withholding out of  a payroll and would end up with a negative net paycheck. Is this even possible? (my gut says no) so instead of direct depositing funds QB would debit his bank account?

 

I told him I did not believe QB would allow this but he wants proof. 

 

He wants to give me a check to credit toward the liability but I told him that the 10K HAS to be on his payroll to properly track for taxes and W2's.  I can't figure out how I can take a check from him but not bump his gross and yet create a negative net paycheck to pay these taxes.  

 

Am I wrong in how I approach this?

 

Thanks,

Stacey

Best answer by Regina_Lend_A_Hand_Accounting
You have to enter the gross amount and withhold the FIT amount he requested you to submit to the IRS. Or he could login to his tax account and make the payment, or you could write a check to the IRS and make sure that it gets applied under his tax ID number.

1 reply

Regina_Lend_A_Hand_Accounting
Regina_Lend_A_Hand_AccountingAnswer
October 12, 2019
You have to enter the gross amount and withhold the FIT amount he requested you to submit to the IRS. Or he could login to his tax account and make the payment, or you could write a check to the IRS and make sure that it gets applied under his tax ID number.
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