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KellyMitton
February 22, 2022
Question

employee deduction to repay a 3rd party

  • February 22, 2022
  • 1 reply
  • 0 views

I need a way to set up QBO payroll in order to deduct part of an employee's pay to be used to re-pay a loan that employee has to a 3rd party and still have the bank feed match the payroll, have the correct taxes deducted, etc.

 

Can anyone help with this?

 

Thanks!

1 reply

N
Nick K
February 22, 2022

Hi KellyMitton.

 

It's great you're taking the steps to make sure your payroll is set up properly. Setting up deductions and pay types is a great way to take full advantage of your payroll add on so you can be confident your employees pay will be accurate. Most of the standard pay types and deductions are supported, and I'll be glad to help you set this up. 

 

One of the most important things when creating a payroll deduction is to have the correct tax settings. These help make sure that your employee is taxed appropriately for any deduction that is made in QuickBooks Online. I recommend checking out this table to get a quick look at the supported pay types and deductions.

 

If you're unsure which deduction to use or if you should charge tax on it, you can reach out to your accountant as they are trained in these kinds of decisions. If you don't have an accountant you can easily find one by going to: My Accountant>Find a pro to help to find one in your area.

 

Once you decide which deduction to use and if it should be taxed or not, you can create it in your QuickBooks Online account by following the steps in this article.

 

If you have any questions let us know and we'd be happy to help.

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