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May 18, 2021
Question

I added an employee to QB payroll who has another job and I was wondering what tax code we use. I used 1151L and no taxes get deducted from their pay. do you know why?

  • May 18, 2021
  • 1 reply
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1 reply

May 19, 2021

Hello, useryounes. 

 

I'd be glad to share important details with you regarding the employee's tax calculations and how to correct them. 

 

You'll want to double-check their P45 form to get the tax code needed for the tax calculations.

 

There are several reasons why the taxes aren't deducted from the employee's pay. QuickBooks Online automatically calculates the taxes based on the P45 information.

 

Another thing to look out for is the total hours worked and the year-to-date amounts of the employee (and their Personal Allowances). 

 

You'll want to review their information in QuickBooks and ensure your employee is set up properly. Here's how: 

 

  1. Go to Payroll, then select Employees.
  2. Select the employee.
  3. Click the Tax information section.
  4. Review and change the Tax code, Tax calculation method, NI Letter, and other information.
  5. Click Save

 

I would also recommend checking with the HMRC and check the employee's tax information. They can also instruct you on how you would handle an employee with two jobs. 

 

Need more help with your employees? You can visit our hubs to look for a guide on how to handle their tax information and more: 

 

 

Feel free to visit QuickBooks Online's articles list page if you need help recording your sales transactions, expenses and managing your lists. 

 

I'm more than happy to help you out again if you have more questions about running payroll for your employees. Do you have other concerns? Add them here and I'll see what I can do.