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How can I remove a smaller rectangular part from another bigger rectangle shape layer in Adobe Photoshop?

My selected layout is 110px x 110px on which I have drawn a rectangle of 106px x 104px. Now I want to remove a 100px x 70px rectangle from the top 17px. The result would be another rectangle of 100px x 70px in the removed section with different effects.

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First I rasterized the large rectangle layer and then selected cutting region with rectangular marque tool and deleted it.

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Use the rectangular marquee tool and set your dimensions to exact. Drag. Delete.

Create a new layer, drag again, fill with desired color, and add effects as needed.

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Another option is to set the marquee selection style to fixed at 100x70. Zoom in and count the pixels as you nudge it to the desired location (assuming center of your original rectangle). From there you can simply cut and paste (or delete and fill) onto a new layer.

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