414h Retirement

Hi there, aquinones.

Let me share information with you how W2 form populates in QuickBooks Desktop (QBDT).

The information that populates on W-2 form depends on how you enter data in QuickBooks. 

For Box 1 on the W-2 form, the system calculates the total wages, tips, bonuses, overtime pay, etc., that are subject to federal income tax, and paid to the employee during the reporting year.

For Box 3, this line calculates the total wages subject to employee Social Security tax, not including Social Security tips (box 7) or allocated tips (box 8), up to the maximum amount.

For Box 5, this is the total gross wages subject to Medicare tax, not including allocated tips (box 8).

For it to show on Box 14, consider the following information reported on this box:

Then, to ensure the amount will not populate on Box 12, I recommend checking the Taxability of pay types and deductions.

You may also wish to contact your accountant for guidance in setting up the retirement deduction. This is to ensure your reports on W2 is correct.
 

To know more how Quickbooks defined each box and field on the W2 form, I recommend checking out these articles:

• W2 form boxes explained
• General Instructions for Forms W-2 and W-3

In case you'd want to print your W2 form, here's an article for your guide: Print W-2 and W-3 forms.

If there's anything else you need about W2 form, feel free to comment below. I'm here to help. Wishing you and your business continued success.

Thank you for your reply but it did not help me resolve my issue. 

Hi there, @aquinones.

You can enter historical tax payments to correct your W-2 data. Let me walk you through the steps.

1. Go to the Help menu, choose About QuickBooks.
2. Press Ctrl + Alt + Y or Ctrl + Shift + Y on your keyboard to open the Setup YTD Amounts window.
3. Select Next until you reach the Enter prior payments section.
4. In the Enter Prior Payments window, select Create Payment to enter all prior payroll tax and non-tax payroll liability payments you have made during the current or previous years.
5. Enter the Payment Date and For Period Ending date accordingly.
6. In the Taxes and Liabilities field, choose the payroll tax item that you've already paid and want to record in QuickBooks Desktop. 
7. Select test the Accounts Affected... button
8. Click Next Payment after you have completed the first payment.
9. Select Done to save your work and click Finish.

You can also refer to this link for more details in entering historical tax payments in Desktop payroll.

You can also enter historical payroll data to correct your W-2 form.

However, if you find the error after you file your W-2s, you can create a W-2c and W-3c in QuickBooks and print them on perforated paper only (not pre-printed). You’ll need to file the W-2c and W-3c manually with the Social Security Administration.

Let me know if you have other queries in managing your taxes in QBDT. Anytime I can help. Take care!

I also have this problem. It is also not subtracting/adjusting the 941 wages/tips/compensation correctly.  Same problem throughout 2022 and requiring override of reports.  Did you ever get this resolved?

No, I gave up.  I will continue to adjust my reports. 

Hi AB-SWCD and aquinones,

I understand how it feels to have an unresolved concern. Allow me to step in and provide additional information.

The 414(h) retirement plan is not among the built-in plans in QuickBooks, so I assume you've created a custom setup. However, QuickBooks doesn't have a tax tracking type that can meet the conditions you state other than the Other type. the thing is it will only report in Box 14 of the W2, not deduct boxes 1, 3, and 5.

Therefore, we can consider this as a limitation, but I recommend consulting a tax professional to verify how said contribution should be reported on the W-2 form. I also suggest sending feedback to our development team, so they can consider adding a tax tracking type that would meet the other conditions you mentioned.

1. Click on Help.
2. Choose Send Feedback Online and then Product Suggestion.
3. Enter your feedback in the Here's my suggestion field.
4. Click Send Feedback.

If you have other questions about Payroll, feel free to go back to this thread. We're just around to help.