How to Enter Payroll As a Split in QuickBooks
QuickBooks payroll does not provide the option to split a payment as a single payroll check. To enter payroll for an employee as a split between a live check and direct deposit, you have to create a deduction on the direct deposit check and then write the employee a check for the difference. If you only want to split a direct deposit into two different accounts, you can do that through the Direct Deposit window when setting the employee up for direct deposit.
Click the "Employees" menu and "Employee Center."
Select the employee you want to set up from the list.
Click "Set Up Direct Deposit."
Check the "Use Direct Deposit For" check box.
Select the option to deposit the paycheck into two accounts.
Enter the employee's bank information and enter the amounts to be deposited into the first and second bank accounts. Click "OK."
Click the "Employees" menu and "Send Payroll Data."
Click the "Related Payment Activities" drop-down menu and "Send Payroll Data."
Click "Send" and enter your payroll PIN. Click "Close."
Click the "Lists" menu, "Payroll Item List," "Payroll Item" button and "New" to set up a deduction item.
Select "Custom Setup" and "Next."
Select "Deduction" and "Next."
Enter a name for the paper check deduction such as "Split Paycheck." Click "Next."
Select the "Liability Account" drop-down menu and select the account you plan to use to pay the employee with a live check. Click "Next."
Typically, you would use an asset account since the money has been temporarily added to your company funds before being disbursed to the employee.
Select "None" for the "Tax Tracking Type." Click "Next."
Leave the check boxes on the Taxes window unchecked. Click "Next."
Select the "Neither" radio button and "Next."
Click the "Net Pay" radio button and "Next."
Select the "Employees" menu and "Pay Employees" to set up the employee paycheck.
Select the employee's name who wants a split check. Click "Open Paycheck Details."
Enter the employee's paycheck information for the entire check. Provide the pay period for the bank account used to pay the employee. Make sure the "Use Direct Deposit" check box is selected.
Click the "Other Payroll Items" column and select the "Split Paycheck" payroll item you created from the drop-down menu. If you used a different name for the payroll item deduction, select the name you chose.
Enter the amount you want to be deducted from the employee's direct deposit in the Rate column. This is the amount of the live check you must create to pay the employee. Send the payroll.
Click the "Banking" menu and "Write Check" to create the employee's live check.
Click the "Bank Account" drop-down list and select the bank account you want to use to pay the employee.
Choose a date for the check. Then, select the employee from the "Pay to the Order Of" drop-down list. Click "OK."
Enter the amount of the check that you entered into the Rate column when creating the direct deposit advance portion of the paycheck.
Click the "Expense" tab and "Account" drop-down list. Select the account you used when creating the deduction item. Click "Print."
Information in this article applies to QuickBooks 2013. It may vary slightly or significantly with other versions or products.