How can I add a one time 401K contribution?

Good day, @craig29.

Currently, adding a one-time 401K contribution is unavailable in QuickBooks. As a workaround, we can set up an annual maximum and per pay period of the employee. For the Annual Maximums company, contribution limits refer to  IRS Retirement Topics - Contribution Limits.

Here are the steps  to follow in setting up contribution to an employee:

1. Select Workers, then Employees.
2. Choose the employee's name.
3. Click the pencil icon in the Pay section. Scroll down on the deductions section. 
4. Then select +Add deductions.
5. Choose Retirement Plans under the Deduction/Contribution type. Then, select the type of Retirement plan
6. Hit Done.

When creating your payroll, the system will automatically calculate the amount of deduction you set up.

Also, for the detailed process in setting up contribution, you can check this article: Retirement plan deductions/contributions.

Please let me know if you have other payroll concerns. I'm just around ready to help. Take good care!

Hi,

We did this, but how do we apply more retirement per pay period for the earlier part of the year? We have decided to contribute more and max it out for the year, meaning we need to adjust for earlier in the year.  How do we update the W2s to reflect?

Thanks,

Chris

Thank you for doing the steps above, @cpilling.

We're unable to apply more retirement plans on previously processed payrolls. I suggest contacting our Customer Care Support team to adjust the plans and enter the amounts per pay period.

To reach us, here's how:

1. Sign in to your QuickBooks Online Company.
2. Click (?) Help at the upper right corner.
3. Select Contact US on the pop-up.
4. Enter a brief description of your concern then hit Continue.
5. Click Get a callback.
6. Enter your contact information.
7. Select Call me.

Please visit this article to learn more about how you can wrap up this year’s payroll and prepare for the next payroll: Year-end checklist for QuickBooks Online Payroll.

Please click the Reply button below if there's anything else I can do for you, I'm always here to help.

Hi Michelle,

We've spent two hours on the phone with your customer care team already today and they do not know how to adjust it. Can we ask specifically for you to call us and assist us?

Thank you,

Chris

Hello there, Chris,

You can instead create a zero net paycheck and put the entire paycheck into their retirement plan. Doing this will add the 401(k) contribution at once. Here's how:

1. Add an Other Earning pay type to the employee's profile. Then, set the amount to 0, and rename is as Taxable offset.
2. Setup a 401(K) Retirement plan deductions. Set the deduction amount to zero.
3. Use the Net to gross formula to determine the gross pay amount.
4. On the Employees page, select Run payroll.
5. Select the ee, and pay schedule. Enter 1 in the Taxable offset box. Then select Preview payroll.
6. Click the pencil icon beside the Net pay amount.
7. In the Taxable offset box, enter the amount determined by using the net to gross formula.
8. Zero out Federal Income Tax and State Income Tax in the Employee taxes section.
9. In the Employee deductions section, enter the 401(k) amount.
10. Select OK. Then select Submit payroll.

I'll be here if you got additional questions.