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emyers1013
Level 1

401k Employer Match

Currently the company offers a match up to 3%

How do I set up the payroll item for the match when an employee contributes a dollar amount that is less than the match amount?

 

Ex:

EE contributes $25 and the company match calculates the 3% on their wages as $66.00 which is more than they contributed.  

 

Is there a way to make QB do this calculation automatically or do I need to manually change the match amount every pay period?

2 Comments 2
ReymondO
Moderator

401k Employer Match

Hi there, @emyers1013.

Since the percentage/amount that was set up in payroll item isn't matched to your employee's actual company contribution, we'll have to manually change the 401(k) match amount from time to time. Here's how you can manually change it in QuickBooks Desktop:

 

  1. Click the Employees menu.
  2. Double click on the employee name.
  3. Go to the Payroll Info tab.
  4. In the ADDITIONS, DEDUCTIONS AND COMPANY CONTRIBUTIONS section, select the 401(k) payroll item.
  5. Insert the specific rate/amount for this employee.
  6. Click OK.

 

In addition, you can run the Payroll Item Detail report to view of list of payroll transactions on which each payroll item appears. Just go to Reports and select Employees & Payroll. Then, click Payroll Item Detail.

I'm always here to help if you have any other concerns or questions. Just tag my name in the comment section and I'll get back to you as soon as I can.

KFerris
Level 2

401k Employer Match

Convert the dollar value to a percentage

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