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May 30, 2022
Question

Non-Taxable Payroll Deduction

  • May 30, 2022
  • 1 reply
  • 0 views

Does anyone know how to record a non-taxable deduction from an employee? This is a non-taxable deduction that needs to be deducted from an employee's net income (very similar I guess to a garnishment situation)

1 reply

May 30, 2022

Hey there Whitney06

 

Thanks for reaching out to us here. It's important that you enter deductions correctly in QuickBooks Online to ensure you are paying the right amount to the government. QuickBooks Online Payroll allows you to add the necessary deductions you need. I can provide some steps that will show you how to add a non taxable deduction for your employee.

 

Navigate to the Gear icon, click on payroll settings. In the Payroll column, select Deductions/Contributions. Click on add a new deduction/contribution. In the category drop down, select Other deductions. In the type drop down, select Other after tax deductions, You can add a description of your choice.

 

If your have any other questions, feel free to reach out here.