EMPLOYEE DEDUCTIONS OWING ON ACCOUNTS RECEIVABLE

Hi Ctouchie,

Welcome to Community!  QuickBooks Desktop is a dynamic program with the features you need to complete your daily tasks seamlessly.  Having a deduction applied to your employee in this situation, can be completed in a few steps.  I'd be glad to assist!

In QuickBooks Payroll, you can set up a pre-tax or after-tax deduction.  If you're uncertain about how the deduction should be taxed, it's best to speak with an accounting professional.  If you don't have an accountant, you can locate a ProAdvisor in your local area here.

Follow these steps to set up the deduction item;

1. Go to Lists, then Payroll Item List

2. Select Payroll Item ▼ dropdown, then New

3. Select Deduction, then Next

4. Give the deduction a name and hit Next 

5. In Agency for employee-paid liability, select a name from Enter name of the agency to which liability is paid ▼ dropdown

6. Enter the number that identifies you to the agency, then select the Liability account from the▼ dropdown menu

7. Hit Next

8. Choose the applicable Tax tracking type. Select None if the deduction is after-tax.

9. Hit Next three times

• For none tax tracking type, select Net pay in the Gross vs. Net window, then Next

10. Leave the Default rate and Limit fields blank, unless these apply to all of your employees.  You’ll add the rate and limit when the item is added to the employee profile.

11. Select Finish.

Here's how to add the deduction item to an employee;

1. Open Employees, then Employee Centre

2. Select your employee

3. Click on the Edit ✎, then select Payroll Info

4. From Additions, Deductions, and Company Contributions, add the deduction item

5. Enter the amount per period and a limit if applicable

6. Hit OK when done.

Should you require additional assistance, please don't hesitate to contact us.  Your success is our number one priority and we'd love to help!

Feel free to reach back out with other questions.  We're here for you!