How to Set Up Child Support in QuickBooks Payroll Deductions

Child support is a financial contribution made by one parent (usually the non-custodial parent) to the other to help cover the costs of raising their child. This payment helps cover various child-related expenses and can vary depending on state laws.

In QuickBooks Desktop Payroll, setting up payroll correctly involves configuring both payroll taxes and deductions. Child support is typically taken out after taxes are applied to the employee’s paycheck. Since multiple employees might have different child support orders, it’s best to create employee-specific deduction items in your payroll system.

If you’re unsure how to set up child support garnishments in QuickBooks Desktop Payroll, follow the step-by-step guide below.

How to Set UP Child Support In QuickBooks Desktop

If you need to deduct child support payments or any other wage garnishments from an employee’s paycheck, you can easily set it up in QuickBooks Desktop. Just follow these simple steps:

• Open the Payroll Item List
  • Go to the Lists menu.
  • Select Payroll Item List.
• Create a New Payroll Item
  • Click New to set up a new deduction.
  • Choose EZ Setup for a guided process or Custom Setup for more control, then click Next.
• Select Deduction Type
  • Choose Deduction as the payroll item type.
  • Click Next to continue.
• Name the Deduction
  • Enter a name that clearly identifies the deduction.
  • Example: Child Support – Bob Smith
  • Click Next.
• Add the Agency or Recipient
  • Enter the agency or organization name that will receive the payment.
  • If you’re unsure, you can leave it blank and add it later.
  • Click Next.
• Choose Tax Tracking Type
  • Select None, then click Next.
• Default Taxes
  • Leave the settings as they are and click Next.
• Gross vs. Net Calculation
  • Choose Net so the deduction is calculated after taxes are applied.
  • Click Next.
• Set Default Rate and Limit (Optional)
  • Enter the deduction amount or percentage and any limit (if applicable).
  • Click Finish to complete the setup.

Note: That’s it! You’ve successfully set up a child support deduction in QuickBooks Desktop. Now, the deduction will automatically appear in the employee’s paycheck whenever you process payroll.

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How to Set Up Child Support Liability Payment Schedule in QuickBooks Desktop

Setting up a payment schedule for child support or other payroll deductions in QuickBooks Desktop ensures your payments are made on time and accurately recorded. Follow these simple steps to configure it correctly:

• Open QuickBooks Desktop
  • Launch QuickBooks and go to the Employees menu.
• Access Payroll Liabilities
  • From the dropdown, select Payroll Taxes and Liabilities.
  • Click on Edit Payment Dues/Methods.
• Open the Payroll Setup Window
  • In the Payroll Setup window, choose Review your scheduled tax payment list.
  • Click Continue to proceed.
• Add or Edit Scheduled Payments
  • When prompted with “Add or edit scheduled payments for benefits and other payments,” click Continue again.
• Locate Child Support or Other Deductions
  • A new window will appear displaying all garnishments and liability payments (like child support, health insurance, etc.).
• Edit the Payment Schedule
  • Find the child support deduction you want to modify and click Edit next to it.
  • Choose the appropriate payment frequency, for example, monthly, quarterly, or as required by your agency.
• Save and Finish
  • Once you’ve set the correct schedule, click Finish to save the changes and close the Payroll Setup window.

Note: Always double-check your payment frequency and due dates to make sure they align with your state or agency’s requirements for child support payments. This helps you stay compliant and avoid penalties.

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Steps to Collect and Set up Payroll Garnishment in QuickBooks

Garnishment is an instruction issued by a court, federal government, or state agency directing an employer to deduct a portion of an employee’s earnings and send it to an agency or creditor. Additionally, the order may allow administrative fees to be included in the deduction.

When you get a court-issued salary garnishment order or tax levy for an employee presently on your payroll, you are bound by law to withhold a portion of that employee’s salary. These orders come with clear laws that outline the amount that was banned and the procedures to be followed while dealing with multiple garnishments.

Step 1: Decide what kind of Garnishment you have

The kind of garnishment you have will decide how you add it to your QuickBooks. There are many kinds of garnishments involved:

• Federal and State Tax Fees
• Support of the child or spouse in stopping the order
• Federal and State Student Loans
• Bankruptcy
• Federal Agency Loan Orders (Non-Tax)
• Creditor garnishments
• Other names used to refer to a garnishment order include “Salary withholding order,” “federal tax levy,” “support order,” “bankruptcy order,” “writ of garnishment,” or “garnishment summons.”

Step 2: Add Garnishment in QuickBooks

Here, you know how to add a garnishment that is deducted from an employee’s disposable income. Follow these steps for your payroll service.

For QuickBooks Desktop Payroll:

In case the employee has different garnishments, create one payroll item or multiple to track the garnishments in QuickBooks Desktop. Then add the new item to the employee profile so it automatically looks like it on every paycheck.

A: Steps to Create the Garnishment Payroll Item:

• Select Lists, then choose Payroll Item List.
• Click on the Payroll Item ▼ dropdown, then select New.
• Choose Custom Setup, then select Next.
• Choose Deduction, then select Next.
• Enter a name for the wage deduction, such as Child Support Smith for employee Bob Smith, and choose Next.
• We should enter the name of the agency to whom the dues have been paid. In case you don’t currently know the agency name, you can add it later. Then Choose Next.
• Leave the Tax Tracking Type ▼dropdown with None selected. Select Next.
• Select Next in Taxes.
• In Calculation by Quantity, confirm that None is selected, and choose Next.
• Select Net to calculate the amount after taxes in gross vs. net. Select Next.
• If there is a default rate and limit, enter it. Don’t forget to add percent signs for percentages and decimals for dollar amounts. Select Finish.

B: Steps to add the garnishment to the employee

• Choose Employees, then select Employee Center.
• Double-tap on the employee’s name.
• Select Payroll Information.
• In the Additions, Deductions, and Company Contributions section under Item Name, add your new garnishment item.
• In the Amount column, enter the amount to be withdrawn per paycheck.
• In the end, select OK.

Step 3: Pay the tax-deductible amount to the appropriate agency

You must make payments directly to the agencies or lenders as per the instructions given in the tax deduction order or tax imposition.

Steps to set up child support deduction in QuickBooks Desktop Payroll

• Go to the Lists menu and select Payroll Item List.
• Click the Payroll Item button at the bottom left and choose New.
• Pick either EZ Setup or Custom Setup (follow on-screen instructions for EZ Setup).
• Click Next to proceed.
• Choose Deduction as the item type and click Next.
• Enter a name for the deduction (e.g., “Health Insurance” or “Child Support – Smith”) and click Next.
• Type in the name of the agency or organization receiving the payment (you can leave it blank and add it later if unsure), then click Next.
• From the Tax Tracking Type drop-down menu, select None, unless you’re told to choose otherwise.
• Click Next through the Default Taxes window.
• In the Calculate Based on Quantity window, select Neither and click Next (avoid choosing Hours or Quantity).
• On the Gross vs. Net screen, select Net to deduct after taxes.
• If you choose Gross, the deduction will occur before taxes. Be sure this is correct.
• Enter the Default Rate and Limit, using a percentage or dollar sign as needed.
• Finally, click Finish to complete the setup.

Check and Verify Child Support Garnishment in QuickBooks Profit & Loss Account

To check and verify whether the child support garnishment is on the P&L account, you can follow the steps below:

1. First of all, click on List > payroll item list > double click the child payment garnishment.
2. You need to keep clicking on next until you come to the agency for employee-paid liability page, choose liability account, click on next, and finish.

After the above two steps, you can go and check your Profit & Loss report to review whether the child support garnishment is appearing or not.

Troubleshooting Child Support Deductions in QuickBooks

If your child support deduction isn’t showing up or calculating correctly, try the following fixes:

1. Verify the Payroll Item Setup

• Go to Lists → Payroll Item List.
• Double-click the Child Support item and review each setup screen.
• Make sure:
  • The item type is Deduction.
  • The agency name is correctly entered.
  • Net is selected for calculation.

2. Check Employee Payroll Information

• Open the Employee Center.
• Double-click the employee’s name.
• Select Payroll Info → Additions, Deductions, and Company Contributions.
• Confirm that the Child Support item is listed with the correct rate or amount.

3. Update Payroll Tax Table

• Go to Employees → Get Payroll Updates.
• Download the latest tax table updates to ensure accurate deductions.

4. Verify Paycheck Details

• Create a sample paycheck (without saving) to preview the deductions.
• Ensure the child support amount appears correctly under “Deductions.”

5. Contact QuickBooks Payroll Support

If the issue persists, it may be due to a data file or configuration problem. Reach out to QuickBooks Payroll Support or your accountspro.co, a QuickBooks expert, for assistance.

Note: Always review local and federal regulations for wage garnishments to ensure compliance when setting up or processing child support deductions.

Conclusion!

AccountsPro is making all efforts to make Child Support Tax and planning settings in QuickBooks Payroll easier. Hope the user can understand the Child Support entry and tax payments via QuickBooks. Moreover, QuickBooks 24/7 Support Number teamed up with a certified ProAdvisor who assists you with issues and problems associated with this.

We have tried to cover the setup and other child support garnishment-related issues in QuickBooks Payroll. But, in case you come across any different issue or need further information on any other point, you can contact AccountsPro, and the QB technical helpdesk will help you.

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