In Intuit Online Payroll, I need to record a net zero check to an officer/employee adding a non-taxable shareholder distribution and subtracting it in FWH ASAP. Help?

I am using Intuit Online Payroll.  I need to record a net zero paycheck for an employee/officer using a non-taxable/non-reportable item to give them an equity withdrawal, and deduct it all in Federal Withholding in order to get more FWH paid in before the end of 2018.

I have tried using a "Reimbursement" item, but that won't allow any adjustment or deduction for FWH.

I have tried the same on one of their regular paychecks, but it will only allow a FWH deduction up to the amount of the taxable income shown, which is no help at all.

I have already spent two calls to support for a total of about an hour of my time.  I know I could do this in the desktop version, so I just can't believe there isn't a way to do it in IOLP.   If not, the accountant wants me to send it via EFTPS and then I will have to prepare the W2's and 941 manually.   Not something I have time for in December or January.

I do hope someone can help...

Answer

Seems setting up a misc net deduction item and adding it to the employee will work.  Are you blocked from doing that? (It'd be easy with QB desktop payroll.)

--edit--

There really isn't any such thing as non-taxable/non-reportable income.  All money paid to an employee for work is compensation.

You should be able to create a normal paycheck with a salary and then manually increase the FWH amount to the point where the check net pay is 0.00.  Withholding extra income tax is not an compliance issue.

If your goal is to only increase the YTD federal tax for an employee without increasing the wages, but you don't have any more payroll for them for the year, that's a bit difficult: In QB desktop you could have the employee give you a check and then create a liability adjustment for FWH to increase the tax but not the wages.

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