The settings on this window affect whether the item affects the
employee's gross pay or their net pay.
Note: If any of your payroll items are based on a percentage of gross
pay, the order in which you add payroll items can be important because some of
the items increase the gross pay, while others have no effect on it.
Effect on gross pay
Effect on taxes
Addition to gross
Increases taxes you selected in the payroll item setup
Flat amount or % of gross; or amount or % times quantity (if based on
Addition to net
Flat amount or % of net; or amount or % times quantity (if based on
Deduction from gross
Decreases taxes you selected in the payroll item setup
Deduction from net
How QuickBooks calculates gross