Paycheck Deductions

How do I handle paycheck deductions?

When entering paychecks, we recommend that you enter your "take-home" or net pay. This is the amount of income that you truly have control over when budgeting. if you are interested in entering your gross income and the deductions, however, here is how you would do that.

Step 1: Set up Categories on the Budget Screen for each of your paycheck deductions.

Learn more about setting up Categories and Master Categories.

Step 2: Budget the amount of the deductions to the appropriate Categories.

Step 3: Enter the "take-home" amount of your paycheck as a split transaction (we'll use $1600 as our example), then enter each of the deductions as Sub-Transactions in the Outflow field. Enter the gross amount of the paycheck as either Income for the current month or the next month.

Step 4: See how this transaction affected the Budget.

Notice that all the paycheck deductions now show as outflows to the appropriate Categories and only the take home pay is left as Available to Budget.

Final Point:  If you have a Buffer, you may choose to enter your income as Income for (the Next Month). Since in that scenario you are living off last month's income, this means that you will be budgeting and accounting for your paycheck deductions in the following month.  If you would like to do this, follow the steps as above to enter the take home amount of your paycheck as a split transaction. Enter your deductions as separate sub-transactions. You will then need to add two sub-transactions for income: your take-home as Income for (the next month) and an amount equal to the total of your deductions (the remainder of your gross pay) as Income for (this month).