When I set up a deduction following instructions it does not reimburse the taxes paid by the employee. whys is this?

Hi there usergwatkins05,

It's vital that all your payroll information be set up properly for the payroll calculations to be accurate. QuickBooks Online Payroll is a great tool able to help you pay your employees for the hours they've worked for your company. I can point you in the right direction for assistance with this payroll advance.

In order to make sure that all your payroll items, including the advance itself, and the deductions are set up properly, I recommend reaching out to the QuickBooks Online support team outside of the Community. They'll be able to view the way all is set up to see why the pay is calculating tax, while the repayment isn't. You can reach them using these methods:

Schedule a Callback or start a Chat: click (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat.
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If you have any other questions, feel free to reach out here.