There is a new option that allows you to set-up deductions on employee payroll computed on a “per hour worked” basis. This has been needed for some time. 

Many union benefits are based on employees hourly rates times the number of hours actually worked in a pay period. With the new deduction option, you can automatically calculate payroll deductions/contributions for employees based on their hours worked.

Rather than having to manually calculate the necessary deduction/contribution and adjust that on an employee’s paycheck every time, you now can set-up the deduction with a “per hour worked” option so that the correct amount will be computed automatically. 

Here’s how to set up the new deduction type in QuickBooks Online Payroll:

  1. Go to Payroll, then Employees. Select your employee.
  2. From Deductions & Contributions, click Start or Edit.
  3. Select + Add deduction/contribution from the Deduction/Contribution drop-down.
  4. Select a Deduction/Contribution type and Type, then add a description.
  5. Rather than selecting whether you want the deduction calculated as a flat amount or a percentage of the gross pay and entering the amount or percentage, choose the new option to calculate the deduction or contribution on a per hour worked basis. Then enter the amount.
  6. Click Save, then Done.

Then, those deductions and contributions will be calculated automatically when you Run Payroll


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