Payroll taxes - PR taxes not calculated in QB but paid gross to employees on seperate check. Management does not want to deduct from employee. How do I fix this in QB?

Hi there, @DC26.

It's nice to see you in the Community. Let me share some information about recording payroll taxes in QuickBooks Online.

Generally, when you pay your employees, it's taxable. However, if the payroll item is non-taxable or they are tax-exempt, like reimbursements, you can add this item to the employee's paycheck to record it in QuickBooks.

Here's how to create a reimbursement pay type:

1. Go to the Workers tab from the left menu.
2. Select the employee's name.
3. Select the edit (pencil) icon beside Pay.
4. Under How much do you pay, select Add additional pay types or the pencil icon.
5. Click Even more ways to pay drop-down, then select Add reimbursement type.
6. Enter the item name.
7. Click Done.

Once done, you can enter it when creating the employee's paycheck. Additionally, I also recommend consulting your accountant about processing payroll with no taxes. This is to make sure you record your payroll and both company and employee tax forms correctly.

I'm also leaving you some article about payroll for additional reference: 

• Taxable/Nontaxable Income

• Employee payroll tax exemptions

That should point you in the right direction. Please know that I'm just a post away if you're referring to something else or if you have additional questions about payroll. I'll be happy to help you out. Wishing you and your business success.