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mcclkris21
August 24, 2021
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Unpaid Maternity Leave - covering deductions (insurance)

  • August 24, 2021
  • 3 replies
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Since you cannot record a negative paycheck, how do you record payroll for someone who has minimal hours due to something such as unpaid maternity leave? The amount of hours worked/paid are less than what will be needed to cover insurance/other deductions for this employee. This negative amount should be owed from the employee back to our company, so what is the best way to show this in QB?

Best answer by AlexV

Hi mcclkris21!

 

Welcome to QuickBooks Community. Let me share and assist you in running payroll for unpaid maternity leave.

 

QuickBooks Desktop only allows us to create a paycheck for the hours worked and not for the hours in the future. We won't be able to track the owed but paid hours.

 

You'll want to adjust the amount of the deduction to zero out the net amount. This way, you can create and record a payroll. Follow these steps:

  1. Go to the Employees menu and select Payroll Center.
  2. Process the payroll as you normally do.
  3. From the Preview Paycheck window, check the net amount after tax. Then, enter the same amount on the deduction. The net now should be zero.
  4. Save it.

 

For more details, please check this link: Create a zero net paycheck. This explains the detailed steps on how to create a paycheck that has a net pay amount of zero.

 

Then, you can deduct the extra amount on the next payroll. Also, it's best to seek some help from your accountant so they can further help you what's the best way to handle this situation.

 

Need help in filing your taxes? Check this link on how you can pay and file online: Pay and file your payroll taxes online. 

 

Keep on posting here if you need anything else. I'll be here!

3 replies

AlexV
AlexVAnswer
August 24, 2021

Hi mcclkris21!

 

Welcome to QuickBooks Community. Let me share and assist you in running payroll for unpaid maternity leave.

 

QuickBooks Desktop only allows us to create a paycheck for the hours worked and not for the hours in the future. We won't be able to track the owed but paid hours.

 

You'll want to adjust the amount of the deduction to zero out the net amount. This way, you can create and record a payroll. Follow these steps:

  1. Go to the Employees menu and select Payroll Center.
  2. Process the payroll as you normally do.
  3. From the Preview Paycheck window, check the net amount after tax. Then, enter the same amount on the deduction. The net now should be zero.
  4. Save it.

 

For more details, please check this link: Create a zero net paycheck. This explains the detailed steps on how to create a paycheck that has a net pay amount of zero.

 

Then, you can deduct the extra amount on the next payroll. Also, it's best to seek some help from your accountant so they can further help you what's the best way to handle this situation.

 

Need help in filing your taxes? Check this link on how you can pay and file online: Pay and file your payroll taxes online. 

 

Keep on posting here if you need anything else. I'll be here!

    john-pero
    john-pero
    August 24, 2021

    Add an after-tax (not subject to any taxes) payroll item for Employee Advance. Add an amount equal to the negative condition that the check would otherwise be such that the paycheck is now zero.  Once the employee returns you can make additional deductions as she/he pays off the advance. 

      M
      mcclkris21Author
      September 2, 2021

      Thanks for the help! This was a great solution.

      M
      mcclkris21Author
      January 4, 2022

      Follow up question. This solution seemed to initially work except now I am having trouble matching this employee's W2 Box #1 (wages, tips, other comp) and Box # 16 (state wages, tips, etc.) 

       

      Any advice?

       

      Thank you.

      M
      Mark_R
      January 5, 2022

      Welcome back, @mcclkris21.

       

      Let me provide information on why the created zero net paycheck doesn't match your employee's wages from W-2.

       

      One of the possible reasons why it doesn't match is that some contributions or deductions affect the wage base. To get this review, you'll have to run the Payroll Summary report and compare the data on your W-2 form. 

       

      If you found any differences, you'll have to use a wage base adjustment to correct an employee's year-to-date (YTD) information. For more guidance, feel free to check out this article: Entering wage base and tax adjustment to correct employee's quarter (QTD) or year to date (YTD) total.

       

      In addition, please know that as long as the tax tracking type of your add ons is correct, the reporting of W-2s should be accurate.

       

      Once you're ready to file your W-2 form, you can read this article for the detailed steps and information: File your W-2 forms.

       

      Please let me know if you need clarification about W-2 boxes. I'll be standing by for your response, @mcclkris21.

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