I need to pay my employee her 'Working from Home' tax-free allowance. How do I process it through payroll so it gets added to the sum due to her?

Hello there, louise50. I'm here to guide you on how you can process payment for your employee in QuickBooks Online Payroll.

In QuickBooks, to process and pay your employees, you'll have to add Additional Pay Types.

Here's how to add pay types for Payroll Core:

1. Access your QBO payroll account.
2. Go to Payroll.
3. Select Employees and open the desired employee.
4. Choose Pay types and click Edit.
5. Scroll down to select Additional pay types.
6. Enter the necessary information and click Save.

I recommend consulting your accountant to determine which pay types to use in order to ensure correct taxability.

For Payroll Advanced, follow these steps:

1. Open your QBO account.
2. On the left side menu, select Payroll.
3. Go to Payroll Settings.
4. Under Pay Run Settings.
5. select Pay Categories.
6. Click Add, then Save.

After adding pay categories, you must assign them to employees for them to appear in the Pay run.

1. Go to Payroll and choose Employees.
2. Select which employee.
3. On the left side, click on Pay Rates.
4. Determine the employee you've just added.
5. Then ensure to enter the Rates and Units.
6. Tick the box under Show in Pay run.

Additionally, you can check out this link to learn how you can create and run your payroll.

If you have further concerns about managing your employees, don't hesitate to come back to the Community page or simply add a reply. We're always here to lend a hand.