How to record a one time lump sum solo401k emploYEE contribution on W2 and in quickbooks using quickbooks payroll service

I appreciate you for reaching out and providing details about the issue with your 401(k) Employee Contribution filings, Rynophiliac.

I completely understand how stressful it can be when unexpected deductions occur due to previously filed contributions. Let's work together to make sure your future filings are done correctly to avoid any further deductions or confusion.

One possible reason for the $5,000 deduction is that the Automated Taxes and Forms feature was turned on when payroll was processed with a zero net check.

To resolve this, we can record the $5,000 deduction as an overpayment since the tax has already been paid separately. This ensures the overpayment is properly reflected on your W-2 form, showing a duplicate tax payment.

Here's how: 

1. Navigate to All apps, then select Payroll
2. Select Payroll taxes, and click Payments.
3. Find the overpaid tax, then select Resolve.
4. Choose either Request a refund or Apply to a future tax payment.
5. Click Confirm, then Done.

Please note that:

• Requesting a refund is recommended if the quarter when the credit was created has ended. You’ll need to contact your tax agency to claim the refund. If auto taxes are enabled and we handle your tax filings, this option will be selected automatically when filing your forms.
• Applying to a future tax payment is not recommended unless you’ve confirmed the credit is valid and hasn’t been applied to other liabilities.
   

To avoid duplicate tax payments in the future, consider turning off the Automated Taxes and Forms feature.

If you have further concern, please feel free to reach out to us. We're here to help.

so you're saying everything was done correctly accept I didn't turn off the Automated Taxes and Forms? And I'm assuming I would need to turn Automated Taxes and Forms back on after I run the payroll for the 401k contribution? 

Hi @rynophiliac,

Yes — that’s right. If everything else was set up correctly, the main issue is that Automated taxes and forms was left on. However, please note that if you sign up on or after November 15, 2025, you won’t have the option to turn off Automated taxes and forms. For more information, visit this article: Set up payroll taxes and forms in QuickBooks Online Payroll.

Here's how to turn off Automated taxes and forms:

1. Go to the Gear icon, then select Payroll settings.
2. Click the pencil icon for Taxes and forms.
3. Uncheck Automate taxes and forms, then choose either I'll initiate payments and filings using QuickBooks or I'll pay and file with the appropriate agencies through their websites or by mail.
4. Click Save when you're done.
    

If you have any questions, please leave a comment in the thread.

ok thanks for that explanation. are you saying the feature to turn off automated taxes is going away after november 15th? I signed up for quickbooks payroll service like 5 years ago. I don't understand if you're saying te feature will no longer be available for everyone after nov 15th or just for new people who sign up after nov 15th?

Hi there, @rynophiliac. Thanks for coming back to this thread.

Let me clarify this for you. New users who sign up on and after November 15, 2025, will not have the option to turn off automated taxes and forms.

As an existing user, you will still have the ability to turn it off.

Please don't hesitate to contact us if you have any further questions or require assistance with QuickBooks.