In QuickBooks Payroll solutions, users can set up auto deductions to their employees' payroll. Users add contributions and deductions to the paycheques they send in the payroll solution. Then they link employee's paycheck.
Optional payroll deductions are amounts levied from an employee's net pay to balance the cost of employee benefits. Setup deduction in QuickBooks Payroll to simply the payroll deduction through automation. Payments get sent to the bank automatically.
The Best Steps to Setup Deduction in QuickBooks Payroll
You can setup deduction in QuickBooks Payroll for your company, for example, retirement plans, health insurance, etc.
Method One for Adding Deductions
A. Steps for QuickBooks Online Payroll Solution
- Access the "Payroll" menu item, and then choose "Employees."
- Tap on the item "Employee's Name."
- Now choose "Edit" next to the item "Pay."
- Then at the "Deduction" section, click on "Add a New Deduction" or "Add Deductions."
- Next, from the "Deductions" dropdown menu, select the "New Deduction."
- Select a "Deduction Type" by clicking on the small arrow icon.
- Type in the "Provider Name." It is the name that appears on a paycheck.
- From the "Amount Per Pay Period" icon, select $ amount or % of total pay and then enter the $ figure or percentage amount.
- Follow the same process for the "Company-paid Contribution" items as applicable.
- Now, click on "Done."
B. Steps to Edit a Previous Deduction
- Beneath the message, "Does this employee have any deductions?" choose the "Edit" icon right next to the mandatory deduction to edit.
- Perform any other necessary changes.
- Click on "OK," and then choose "Done."
Follow the above steps to easily setup deduction in QuickBooks Payroll.
Method Two for Setting Up Deductions
Below are the steps to setup deduction in QuickBooks Payroll:
- Click on the "Settings" (gear) icon, then tap on the "Payroll Settings."
- Now choose the item "Pay Schedules."
- Either choose "Deductions" or "Contributions."
- Then tap on the item "Add a New Deduction."
- Choose either "Retirement Plans, Health Insurance, or Non-cash Taxable Benefits" from the dropdown menu.
Depending on either deduction or contribution, the following information is necessary:
- If you choose "Other Deductions," type in brief details for that deduction type.
- If you tap on "Health Insurance or Retirement Benefits," enter the relevant information.
- If you choose "Non-cash Taxable Benefits," select the benefit details in the sub-menu.
- Select "OK" when all components are there.
So far setup of deductions is complete in QuickBooks Payroll solutions. Follow these steps to add to an employee's account:
- Access the section "Employees" and now "Add an Employee."
- Type in the details in sections 1- 4 as per the employee's resume.
- Now, choose the item "Edit" next to item number "5," which is "Pay."
- Tap on the "Edit" icon next to the message "Does this employee have any deductions."
- Select a "Deduction" type in the dropdown menu
- If you want to create a new "Deduction Type," select the "New Deduction."
- Then choose the "Type or Sub-category" of the "Contribution or Deduction."
- Now type in the "Provider Name" in the dedicated box. That is how the contribution/deduction will display on the employee's pay stub or a paycheque.
- Next, set the "Company-paid Contribution and Employee Deduction" figure per pay cycle. You can select the $ amount or percentage. It is good to add a yearly maximum to stop over-deductions.
- Now complete the process by selecting "OK."
At times, employers may also need to set up deduction categories.
Choose the item "Employees" in the left-hand menu bar.
- Tap on the "Payroll Settings" section and then click on the "Deduction Categories."
- Now click on "Add" and type in the "Name for the Deduction."
- Choose "Save" after entering the "Deduction Type" and any other details.
Mapping a deduction for an existing employee through the following steps:
- Choose "Employees" in the left-hand menu. Now click on the employee you want to add the deduction.
- Then click on the "Pay Run Inclusions" from the following left-hand menu bar. Now, click on the "Add Button" besides the item "Deductions."
- Tap on the "Deduction Type & Amount."
- Set a payment method for the deduction item and save that.
- Type in details for other relevant sections as well as start and end dates. Now, select the "Save" button.
QuickBooks Payroll solution makes company accounts and payroll maintenance effortless. When you want to setup deduction in QuickBooks Payroll, follow the above steps to make changes instantly.