How to Set up Voluntary Deduction in QuickBooks online Payroll Account?

A company plays vital roles, because in a company income coming is not enough, they also have to deal with […]


Free Trial Dancing Numbers Online
Voiced by Amazon Polly

A company plays vital roles, because in a company income coming is not enough, they also have to deal with expenses. One of the main expenses is paying peoples who are working for the income of company like employees and contractor.

So, QuickBooks online is the easy and efficient way in order to handle payroll. QuickBooks also contains add-ons like their payment plans. So, if you want to use add-ons you have to enroll for it.

Save Time, Reduce Errors, and Improve Accuracy

Dancing Numbers helps small businesses, entrepreneurs, and CPAs to do smart transferring of data to and from QuickBooks Online. Utilize import, export, and delete services of Dancing Numbers software.

Types of Voluntary Deduction in QuickBooks Online Payroll Account

Medical, dental and vision insurance premium all are included in the voluntary payroll deduction but the garnishments are not come under the voluntary deduction.

The following are the deduction which is supported by the QuickBooks online payroll:

Mandatory Deduction

  • FICA Taxes
  • Federal, State and local income taxes
  • Wage garnishments

Voluntary Deduction

  • Health, Disability and insurance
  • Retirement Plans
  • Job Related Expenses

Pre-Tax Deduction

  • Medical and Dental Benefits
  • 401(K) retirement plans
  • Group-term Life insurance

Post-Tax Deduction

  • Wage Garnishment
  • Roth IRA Retirement Plan
  • Union Dues

Mandatory Deductions in QuickBooks Online Payroll Account

Pre-Tax

Income Tax is made up of two general taxes i.e Federal Insurance Contribution act and Federal Income Tax.

State and Local Taxes are known as the taxes which have there structure according to the state.

Post-Tax

These taxes are for the special cases like if the employee has unpaid debt.

Employee Tax Contribution

With the help of W-4 form, your employee can choose certain amount to be deducted from their taxes.

Voluntary Deduction Pre Tax

Health serving plans are the pre tax deduction. This is the plan provided by the company for the health insurance of the employ.

Pre and Post Tax

These plans are life insurance and retirement plans. They are same as disability insurances and job-related expenses such as uniform, union dues and meals.

Other Expenses

This includes deduction from meal, travel, uniform, home office equipment, parking, transit, medical exams etc. These costs are deducted on the basis of post-tax.

Setup Voluntary Deduction in Online Payroll

Voluntary payroll deduction is the amount which is subtracted from the employee’s net pay in order to cover the cost of things like employees paid benefits which is offered by the employer or the deduction like charitable donation.

For the deduction like health insurance, retirement plans, HAS or FSA Plans etc with the help of this your provider is able to decide the amount to be withheld and determine the taxability.

Deduction vs Contribution

A deduction is the amount which is paid by the employee and it is deducted from each paycheck. The contribution is paid by the employer and it is count as an additional pay and wages.

Set up of New Deduction Items to Employees

Follow the following steps in order to set up of new deduction items:

  • First you have to add deduction item for your employees.
  • Once you add deduction item then select the item for which deduction is to be done.
  • Now the item appears as an option to select that the adding of deduction to the rest of your employees.

Assigning of Deduction item to Employees

Now you can add the same deduction which you have to set up for an employee to the other employees by assigning to them.

Deduction Guidelines

  • Retirement Plan Deduction and Contributions

There are many retirements plan contribution are tax deferred. Tax deferred means that before the certain tax are calculated the wages must be reduced by the amount of the contribution.

  • Flexible Spending Accounts

In this employee can pay medical, dental and vision insurance premium with pretax paychecks deduction.

  • Health Saving Account

The employees are eligible to set Health Saving Account (HAS). High-deductible health plan (HDHP). The company and the employees can contribute to their HAS.

Change or Delete Payroll Deduction item in Online Payroll

With the help of QuickBooks, you can easily make changes to employee payroll deduction like retirement, insurance or garnishment. If you need to change the deducted amount or remove the item from your employee.

Edit and Delete of a Payroll Deduction item

Once you remove a deduction in the employees setup, it will remain in the deduction list. The setup of employee can’t be removed completely from the list. For your future convenience you can rename it with a name “not in use”. Renaming of name is very helpful for you in order to avoid duplicity.

Depositing and Reporting

Once you deducted all the necessary payroll and taxes, including social security and Medicare. This all must be deposited and reported in state tax agency (keep in mind it must be up-to date and correct).

Depositing:

For the federal Taxes you must use direct deposit system. This direct deposit system is known as electronic fund transfer system. The deposit must be done on the set schedule. If you need any detail regarding the schedule then you can easily find it on IRS Website.

The sale tax payable is totally depends on your state tax agency.

Reporting:

Your reports must be submitted to federal and state agencies. The form no. 940, 941, 944 are to be submitted on paper or via efile for federal taxes.

And the state agencies will have there own rules and forms for reporting. You must be sure to check that they all are done with a proper procedure.

The both the procedure of payroll i.e deduction and reporting both can be complicated but with the proper utilization of resources and paying full attention to the detail you enter; your business will never have issues.

There are plenty of payroll deductions for the employees. The employer must know by all. Payroll deduction can be of any type i.e it can be a voluntary, pre-tax or post- tax. Knowing the detail of all different types of deduction will help you to understand where will be your paychecks go each pay period.

Accounting Professionals, CPA, Enterprises, Owners
Accounting Professionals

Looking for a professional expert to get the right assistance for your problems? Here, we have a team of professional and experienced team members to fix your technical, functional, data transfer, installation, update, upgrade, or data migrations errors. We are here at Dancing Numbers available to assist you with all your queries. To fix these queries you can get in touch with us via a toll-free number
+1-800-596-0806 or chat with experts.


What is the Deduction on Your Paycheck Which are Voluntary?

Voluntary Payroll Deduction:

Retirement
Health Insurance premium
Life Insurance Premium
Pre-Tax Health Savings Plan
Short term disability plans
Tools
Uniform
Certification Deduction

What are the Two Examples of Voluntary Deduction?

Voluntary deduction is the amount which is selected by the employ for the deduction from gross pay. Group life insurance and credit union deductions are the two examples of Voluntary Deduction.

What are the 2 Types of Payroll Deduction?

Mandatory Payroll and Voluntary Payroll Deduction are the two types of payroll deduction.

What are Voluntary Deds?

The deductions which require the employees’ consent are known as voluntary Deds.

What are the Types of Deduction?

The types of deduction are:

Social Security
Insurance Policy Deduction
Medical Care Tax
Retirement Deduction
Federal Income Tax

Are FICA Taxes are the Voluntary Payroll Deduction?

These are the statutory employee’s deduction from payroll. Failure to this can lead to penalization.

Can You Deduct Employee Wages?

One can claim a tax deduction for the salary, wages, commission, bonus and other compensation that you pay to your employees.

Is Social Security a Voluntary Deduction?

No, You didn’t require but voluntary withholding are the one way to cover any tax that may be due on your social security benefits and other incomes.

Which type of Payroll Deduction is Voluntary Apex?

Union dues, retirement dues, or contribution and flexible spending accounts for health care and dependent care expenses.

What is the Difference Between Deduction and Withholding?

Withholding are the amount which is taken out from every employee’s paycheck to pay their income taxes for that pay period.

Deduction are the amount which are taken out from the benefits and the donations that the employ has chosen.

Features of Dancing Numbers for QuickBooks Desktop

Imports

Imports

Exports

Exports

Deletes

Deletes

Customization

Customization

Supported Entities/Lists

Dancing Numbers supports all QuickBooks entities that are mentioned below:-

Customer Transactions

Invoice
Receive Payment
Estimate
Credit Memo/Return Receipt
Sales Receipt
Sales Order
Statement Charge

Vendor Transactions

Bill
Bill Payment
Purchase Order
Item Receipt
Vendor Credit

Banking Transactions

Check
Journal Entry
Deposit
Transfer Funds
Bank Statement
Credit Card Statement
Credit Card Charge
Credit Card Credit

Employee Transaction / List

Time Tracking
Employee Payroll
Wage Items

Others

Inventory Adjustment
Inventory Transfer
Vehicle Mileage

Technical Details

Easy Process

Easy Process

Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

Error Free

Error Free

Worried about losing time with an error prone software? Our error free add-on enables you to focus on your work and boost productivity.

On-time Support

On-time Support

We provide round the clock technical assistance with an assurance of resolving any issues within minimum turnaround time.

Pricing

img

Importer, Exporter & Deleter

*See our Pricing for up to 3 Company Files

$199/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Unlimited Export
  • Unlimited Import
  • Unlimited Delete

img

Accountant Basic

*See our Pricing for up to 10 Company Files.

$499/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer,Exporter,Deleter
  • Unlimited Users
  • Unlimited Records
  • Upto 10 companies

img

Accountant Pro

*See our Pricing for up to 20 Company Files.

$899/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer, Exporter, Deleter
  • Unlimited Users
  • Unlimited Records
  • Up to 20 companies

img

Accountant Premium

*See our Pricing for up to 50 Company Files.

$1999/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer, Exporter, Deleter
  • Unlimited Users
  • Unlimited Records
  • Up to 50 companies

Dancing Numbers: Case Study

Frequently Asked Questions

 
How and What all can I Export in Dancing Numbers?

You need to click "Start" to Export data From QuickBooks Desktop using Dancing Numbers, and In the export process, you need to select the type you want to export, like lists, transactions, etc. After that, apply the filters, select the fields, and then do the export.

You can export a Chart of Accounts, Customers, Items, and all the available transactions from QuickBooks Desktop.


How can I Import in Dancing Numbers?

To use the service, you have to open both the software QuickBooks and Dancing Numbers on your system. To import the data, you have to update the Dancing Numbers file and then map the fields and import it.


How can I Delete in Dancing Numbers?

In the Delete process, select the file, lists, or transactions you want to delete, then apply the filters on the file and then click on the Delete option.


How can I import Credit Card charges into QuickBooks Desktop?

First of all, Click the Import (Start) available on the Home Screen. For selecting the file, click on "select your file," Alternatively, you can also click "Browse file" to browse and choose the desired file. You can also click on the "View sample file" to go to the Dancing Numbers sample file. Then, set up the mapping of the file column related to QuickBooks fields. To review your file data on the preview screen, just click on "next," which shows your file data.


Which file types are supported by Dancing Numbers?

XLS, XLXS, etc., are supported file formats by Dancing Numbers.


What is the pricing range of the Dancing Numbers subscription Plan?

Dancing Numbers offers four varieties of plans. The most popular one is the basic plan and the Accountant basic, the Accountant pro, and Accountant Premium.


How can I contact the customer service of Dancing Numbers if any issue arises after purchasing?

We provide you support through different channels (Email/Chat/Phone) for your issues, doubts, and queries. We are always available to resolve your issues related to Sales, Technical Queries/Issues, and ON boarding questions in real-time. You can even get the benefits of anytime availability of Premium support for all your issues.


How can I Import Price Level List into QuickBooks Desktop through Dancing Numbers?

First, click the import button on the Home Screen. Then click "Select your file" from your system. Next, set up the mapping of the file column related to the QuickBooks field. Dancing Numbers template file does this automatically; you just need to download the Dancing Number Template file.

To review your file data on the preview screen, just click on "next," which shows your file data.


What are some of the features of Dancing Numbers to be used for QuickBooks Desktop?

Dancing Numbers is SaaS-based software that is easy to integrate with any QuickBooks account. With the help of this software, you can import, export, as well as erase lists and transactions from the Company files. Also, you can simplify and automate the process using Dancing Numbers which will help in saving time and increasing efficiency and productivity. Just fill in the data in the relevant fields and apply the appropriate features and it’s done.

Furthermore, using Dancing Numbers saves a lot of your time and money which you can otherwise invest in the growth and expansion of your business. It is free from any human errors, works automatically, and has a brilliant user-friendly interface and a lot more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


Is it possible to use the Direct Connect option to sync bank transactions and other such details between Bank of America and QuickBooks?

Yes, absolutely. You can use the Direct Connect Option by enrolling for the Direct Connect service which will allow you access to the small business online banking option at bankofamerica.com. This feature allows you to share bills, payments, information, and much more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


What are the various kinds of accounts you could access in QuickBooks?

QuickBooks allows you to access almost all types of accounts, including but not limited to savings account, checking account, credit card accounts, and money market accounts.

Get Support

Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

Worried about losing time with an error prone software? Our error free add-on enables you to focus on your work and boost productivity.

Close X
Call Now+1-800-596-0806
Dancing Number

We value your privacy and are strongly against any kind of phishing, spam, and malware. We collect your information for our legitimate business purpose only. This information is safe with our in-built security.

X



    Top