401k Contribution to include Sick-time/Vacation time paid for Salary Employees

Joseph31 · ‎January 13, 2022

Long time reader, first time poster.

We recently set up a 401k matching program for our employees. We also use QB to track PST and PTO for our salary employees. For years I have just inputted how many PST hours, PTO hours, and regular hours they have worked and it automatically divvies up the annual salary and simultaneous tracks the PST and PTO accumulations/usage. I love this feature because I can internally analyze how much of our total payroll costs are associated with vacations and sick days.

However, I just set up a 401k contribution and 401k company match payroll item as a percentage of salary and things are no longer working. QB is only calculating 401k amounts against the regular salary dollar amount, not the gross including any PST and PTO used.

Basically, I want it to calculate both the 401k contribution and 401k company match from the gross of all compensation payroll items listed for that particular paycheck instead of just regular salary hours. Any help would be greatly appreciated, I am just going to calculate it manually for now.

Rasa-LilaM · ‎January 13, 2022

Thanks for visiting the Community today, Joseph31.

I’m here to ensure that QuickBooks will calculate your 401k contribution and 401k company match from the gross of all compensation payroll items.

Since your employees are salary paid, you’ll have to enter a specific number in the Hours column. This way, the correct contribution amounts for the mentioned retirement payroll items will show on the paychecks.

Let me share this article to learn more about adding the retirement plans item in QuickBooks: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.). From there, you’ll see some helpful links on how to set the Roth plans for your workers.

To help and guide you on how to prepare the year-end's taxes and forms, you can browse to the

Year-end checklist for QuickBooks Desktop Payroll resource. It provides an overview of the filing period as well as payroll tasks you'll have to perform.

Feel free to add a comment if you have additional questions on how to handle your 401(k) contributions. I’m more than happy to look into this for you. Enjoy the rest of the day and stay safe.

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401k Contribution to include Sick-time/Vacation time paid for Salary Employees

401k Contribution to include Sick-time/Vacation time paid for Salary Employees

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