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R
rynophiliac
January 16, 2026
Question

How to record a one time lump sum solo401k emploYEE contribution on W2 and in quickbooks using quickbooks payroll service

  • January 16, 2026
  • 1 reply
  • 17 views

each year I pay a one time lump sum payment into my solo401k and I call quickbooks payroll to have them record it on my W2 but each year they get it wrong and screw it up, I finally talked to someone who sounds like they know what they're talking about and he has me run a new payroll, set hours worked to zero so no additional wages are paid, we calculate out the tax and set it to net zero then record the 401k deductions on the check and submit the payroll. He sent me an article to do it on my own in the future and I thought I finally had this issue resolved. Then... checking my bank account I see quickbooks took out $5,000 as a tax so I called support to see why and they say it was the payroll that I ran to record my 401k contribution.  I'm not sure why there would be additional tax owed as there was no additional wages. This 401k contribution was coming from wages that were already paid and taxes previously in the year, I was simply moving the money to the 401k account and needed it recorded on my W2 so that I could get the deduction when I file my taxes. Is there anyone out there who knows what to do?? and how I can complete this task correctly? Quickbooks support has been of no help and I've spent 4 hours on this issue already this year with no resolution or understanding how to accomplish this. To be clear, I am talking about the emploYEE contribution (not the emploYER contribution). Please help

1 reply

K
KiazzymaeCQuickBooks Team
QuickBooks Team
January 16, 2026

I appreciate you for reaching out and providing details about the issue with your 401(k) Employee Contribution filings, Rynophiliac.

 

I completely understand how stressful it can be when unexpected deductions occur due to previously filed contributions. Let's work together to make sure your future filings are done correctly to avoid any further deductions or confusion.

 

One possible reason for the $5,000 deduction is that the Automated Taxes and Forms feature was turned on when payroll was processed with a zero net check.

 

To resolve this, we can record the $5,000 deduction as an overpayment since the tax has already been paid separately. This ensures the overpayment is properly reflected on your W-2 form, showing a duplicate tax payment.

 

Here's how: 

 

  1. Navigate to All apps, then select Payroll
  2. Select Payroll taxes, and click Payments.
  3. Find the overpaid tax, then select Resolve.
  4. Choose either Request a refund or Apply to a future tax payment.
  5. Click Confirm, then Done.

 

Please note that:

 

  • Requesting a refund is recommended if the quarter when the credit was created has ended. You’ll need to contact your tax agency to claim the refund. If auto taxes are enabled and we handle your tax filings, this option will be selected automatically when filing your forms.
  • Applying to a future tax payment is not recommended unless you’ve confirmed the credit is valid and hasn’t been applied to other liabilities.
     

To avoid duplicate tax payments in the future, consider turning off the Automated Taxes and Forms feature.

 

If you have further concern, please feel free to reach out to us. We're here to help.

R
rynophiliacAuthor
January 16, 2026

so you're saying everything was done correctly accept I didn't turn off the Automated Taxes and Forms? And I'm assuming I would need to turn Automated Taxes and Forms back on after I run the payroll for the 401k contribution? 

EduardA
EduardAQuickBooks Team
QuickBooks Team
January 16, 2026

Hi @rynophiliac,

 

Yes — that’s right. If everything else was set up correctly, the main issue is that Automated taxes and forms was left on. However, please note that if you sign up on or after November 15, 2025, you won’t have the option to turn off Automated taxes and forms. For more information, visit this article: Set up payroll taxes and forms in QuickBooks Online Payroll.

 

Here's how to turn off Automated taxes and forms:

 

  1. Go to the Gear icon, then select Payroll settings.
  2. Click the pencil icon for Taxes and forms.
  3. Uncheck Automate taxes and forms, then choose either I'll initiate payments and filings using QuickBooks or I'll pay and file with the appropriate agencies through their websites or by mail.
  4. Click Save when you're done.
     

If you have any questions, please leave a comment in the thread.

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