I am trying to set up a state tax levy garnishment that is supposed to be deducted from Gross Wages and when I set it up its taking out of Net Wages. Please help.

Its supposed to be 25% of Gross and is deducted from the employees Net Pay.


Hello there, ["CRJames70"],

You need to check the payroll item setup. This way, you can verify if your state tax levy garnishment was accurately entered. I'm here to guide you how.

  1. Go to the List menu, then choose Payroll Item List.
  2. To edit, double-click the garnishment you've created.
  3. Select Next 5 times to reach the Gross vs. net window.
  4. Make sure you've chosen the gross pay radio button.
  5. Click Next, then Finish.

You can refer to the screenshots below for your reference.

Once completed, I'd suggest to close all windows open, then close QuickBooks to ensure that the update is implemented. Open QuickBooks again, then try to create a dummy paycheck to check if it's now deducting to the employee's gross pay.

Please be reminded that QuickBooks will catch up to the tax amount deducted, whether it's over or underpaid. If you've already filed your taxes, I'd advised creating a payroll liability adjustment to correct the employee's YTD information.

Please let me know if you have other payroll concerns.  I'm just around if you need help.

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IntuitRea , Community Support Specialist
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