Welcome to the QuickBooks Community, Jean.
I can help you set up a non-taxed contribution in your QuickBooks Online (QBO) Payroll.
You'll want to create a company contribution item to set up a non-taxed contribution. You can follow these steps:
- Go to Payroll, then Employees.
- Select your employee.
- From Deductions & contributions, select Start or Edit.
- Select + Add Deduction/contribution.
- Select the following:
a. Deduction/contribution type: Select the contribution type.
b. Type: Select the specific contribution item.
c. Description: enter the name of the contribution or plan provider.
- In the Company contribution section, select how the contribution is calculated. Then enter the amount or percent per paycheck.
- If you want to specify an annual maximum amount for company contributions, enter the amount in the Annual Max field.
- Select Save.
Just a heads up, while company contributions are usually exempt from taxes, they can still be reported on some payroll tax forms. Therefore, I encourage consulting your plan provider and tax professional to learn more about your contribution.
If you need to run a company contribution report, check out this article about the list of available payroll reports in QBO: Run payroll reports.
We'll be here in the Community if you further need assistance creating a non-taxed contribution in QBO Payroll. We're committed to offering ongoing support. Have a great day!
