I understand how important it is for you to have the option to select hourly taxable deductions in QuickBooks Online. Currently, this isn't available.
You can choose to set up items for pre-tax or post-tax deductions, as well as add general deductions like uniforms, tools, commuter benefits, and miscellaneous. I recommend reaching out to your accountant if you're unsure how deduction is taxes. Afterward, you can add the deduction by performing the procedures below.
Here's how:
Go to Payroll, then Employees.
Select your employee.
From Deductions & contributions, click Start or Edit.
From the Deduction/contribution ▼ dropdown, select + Add deduction/contribution.
Select a Deduction/contribution type and Type. If you need to set up a pre-tax item that isn’t listed, like commuter benefits, AFLAC, etc, select Vision Insurance. Then after Step 7, select Pre-tax insurance premium.
Add a Description.
Choose either the deduction calculated as a Flat amount or a Percentage of gross pay. Then enter the amount or percentage.