Can anyone help me with deducting a FRO payment from an employees pay. I need to deduct a % of their net pay not gross pay?

Hi there julie133,

I commend you for looking for the best way to account for your employee's payroll deductions. QuickBooks Online makes it easy to add deductions so let me go over this with you.

While you can't deduct a percentage from your employee's net pay, you can add an after tax deduction in the dollar amount. You'll have to calculate the amount manually and enter it each time you run payroll. Here's how:

1. Navigate to the Payroll tab and select the Employees page.
2. Choose the employee that you need to add the deduction for.
3. Hit Edit employee.
4. Locate number 6, Does your employee have any deductions or contributions?
5. Hit the + Add deductions to add a new one.
6. Choose Other deductions from the dropdown for Deduction/contribution type.
7. Pick Other after tax deductions as the type.
8. Enter a description, such as FRO in this case.
9. Enter $0.00 for the $ amount. Each time you run payroll you'll have the enter the correct percentage as a dollar amount.
10. Hit OK to save your changes.

If this doesn't quite hit the mark, it'd be worthwhile to consult with your accountant on this. They'll be able to advise you on the best way to calculate and record this deduction. If you're already working with one, navigate to the My Accountant tab and invite them to join you in QuickBooks. Use the Find a pro to help button if you'd like to look for a QuickBooks-certified accountant to help you out.

I wish you the best of luck! I know you'll have this sorted out in no time.