How do I set up a 401(k) with a Safe Harbor employer match: 100% match of first 3% of salary and 50% match of second 2% of salary (with a total cap of 4%)?

Don't worry, I have troubleshooting steps here for you to use more than 401K matches in your payroll, @susan-estes.

I know that setting up two matches for 401K is a great help for your business. Since this functionality is unavailable, the best solution I can think of as of the moment is to change the item percentage before running the payroll. This way, the first and second matches will apply in the paycheck. 

To do this, follow the instructions below: 

1. Go to the Payroll tab and select Employee. 
2. Select the appropriate name and click the Edit.
3. Hit the Pencil icon beside the 401K item.
4. Modify the percentage and save it. 

For more details, check out this article: Retirement plan deductions/contributions.

After that, apply the 401k plan in the paycheck. For more information, see this link: Process or run payroll.

Additionally, check out this article to know the 401K contribution limits, rules for withdrawing the plan, and other related matters: What is a 401(k) plan?

Always remember that my doors are always open for whatever assistance you need. Post a reply below. Take care,susan-estes.

Hello

Our company will be transitioning from the 401K Simple plan to the Save Harbor Plan. However, QB Payroll On-Line does not currently have a solution for this issue. In case we decide to continue with the Simple 401K setup, we would like to know how we can change the contribution limits for 2024, as the limits are higher. Also, we would like to understand how this change will be reflected in the W-2 forms at the end of the year. Thank you for providing us with this information.

Hi there.

Safe Harbor Plan 401(k) and the traditional 401(k) plan are similar in contribution limit but differ among other things. You can change the contribution limits for 2024 if you wish to change from Simple 401(k) to the traditional 401(k), but you'll need to contact your Tax Advisor or Accountant to ensure you're doing the right way. Changing retirement plans will be reflected in W-2 forms in different boxes.

Since the Safe Harbor Plan is currently unavailable in QuickBooks, you can send direct feedback to our product engineers.

Here's how:

1. Select the Gear icon and choose Feedback.
2. Fill in your suggestions in the Feedback field.
3. Select Next to send it.

Furthermore, here's an article on how to change retirement plans and learn about each contribution limit: Set up or change a retirement plan.

If you have further questions about retirement plan contribution limits in QuickBooks Online, please don't hesitate to reply to this post. I'm always around to assist you.

I have a question so i have a safe harbor plan that also has a s corp medical as well , and the 401 k match up to 4% , i am noticing that if i have both of these the system ignores the company match , how can i fix this , the system is ignoring the match on the scorp med . insurance

Hello there.

I'll ensure to address and provide information on how to fix your concern.

What you're trying to do is unavailable, since the Safe harbor plan is not yet supported by QuickBooks. Also, the S corporation medical insurance is a Common Pay type that's why he system is ignoring the match on the S corporation medical insurance.

You can refer to these articles for more details about managing retirement plan and S-corp medical contributions in QuickBooks:
 

• Set up or change a retirement plan
• Set up an S-corp medical payroll item for your corporate officers

In your case, I suggest consulting with your accountant regarding this matter so they can guide you with the best option to use and ensure the accuracy of your books. 
 

Also, you may consider looking for a third party application to help you achieve your goal. You can search for applications through the Apps menu of your QBO, then click Find Apps tab. You can also look here in our QuickBooks Online App Store.

I'm also including this article in case you'll want to run payroll reports in the future: Run payroll reports. This includes all the lists of payroll reports available in QuickBooks Online.

Tag me in the comment section if you have follow-up questions. I'm always here to help you.