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MBruck
Level 1

deferred compensation

Needing to enter non-qualified deferred compensation for an employee.  Cannot figure out the correct entry.  SSI and Medicare tax need to be paid, but other taxes deferred until compensation received.  Need to record the amount also so that it shows up in the correct box on 

3 Comments 3
MaryLandT
Moderator

deferred compensation

I can help set up a deferred compensation for an employee, MBruck.

 

All deferred contribution plans are qualified in QuickBooks. And, these contributions are exempt from federal income tax withholding (and in most cases state income tax withholding). But, they are subject to Medicare, social security, and FUTA taxes.

 

You can select an item under the Retirement Plans section through this page: Supported pay types and deductions explained.

 

Then, follow the steps outlined in these articles when setting up the payroll item:

If you aren't sure about the item, I recommend consulting with your accountant. This is to ensure your books are accurate.

 

I'm also adding this link for additional information: Deferred compensation limits.

 

Stay in touch with me if you have follow-up questions about deferred compensation. I'm always around to help you.

MBruck
Level 1

deferred compensation

Not understanding why the limitation with QB and unable to record a non-qualified deferred compensation.  Shouldn’t all forms of compensation be part of the QB software as well as all options that could be used on a W-2.

 

Causes a manual entry that is not ideal.  

 

MBruck
Level 1

deferred compensation

Not understanding why QB would not have the ability to enter all possible forms of compensation that could be included on a W-2.  Limitation that will cause a manual entry on the W-2 and also manual entry when the deferred compensation is disbursed.  Disappointed with QB again.

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