iS IT POSSIBLE TO DEDUCT A WEEKLY ALLOWANCE FROM AN EMPLOYEES PAYSLIPP WITH THEIR PERMISSION FOR AN AMOUNT THEY OWE US FOR AN INVOICE?

Hello Pippa TB,

Welcome to the QuickBooks Online community! It's great to hear that you're taking advantage of our payroll services for you employees. I hope that everything is working well for your business up to this point. I can help you set up this payroll deduction for what this employee owes on an invoice.

When it comes to payroll questions, know which version of the service you're using is important because they work different and have different steps to take to set things up. Not to worry though! In this instance, I'll cover both for you so you have the steps you need.

No matter which payroll you're using, doing the employee deduction and adding a payment to the invoice will need to be handled separately as the employee and customer centres are two separate areas. If you haven't already done so, you'll need to set up your employee as a customer in QuickBooks Online, create the invoice, and then create payments for the invoice when you need to.

Now let's take a look at setting up the deductions for your employees.

Set up employee deductions in QuickBooks Online Standard Payroll

1. Select the Employees tab from the left menu.
2. Click the name of the employee from whom the funds are being deducted.
3. Click Edit employee.
4. Choose Add a new deduction in the Does Laura have any deductions or contributions? section.
5. Choose Other deductions from the Deduction/contribution type.
6. Choose an option from the Type drop-down menu.
7. Give the decution a name in the Description field.
8. Fill out the other details as needed.
9. Click OK to save.

Set up an employee deduction in QuickBooks Online Advanced Payroll

1. Click the Employees tab in the left menu.
2. Choose the Employees tab on the Employees screen.
3. Select Edit on the employee from whom the funds are being deducted.
4. Click the Deductions & benefits tab.
5. Click Add.
6. Choose from the Deduction type drop-down menu.
7. Fill out the rest of the details as needed.
8. Click Save.

If you need to set up a new deduction type before applying it to the employee in Advanced Payroll, select Pay & tax settings from the Employees screen instead. Next, choose Deductions & benefits, then Add. Choose a type, such as Other deduction, give it a name, Save, and then go to your employee to add the deduction type to them.

Just so you have it, here's an article about recording customer payments, including partial payments, so you can take care of recording that on the invoice as well: Record a customer payment

I hope that helps! Enjoy your day.