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R K
Level 2

IRA Max Contribution deduction calculation

My client has an employee who will max out his annual contribution of $13,500.  QBO reduced his contribution on the last 2 payrolls, however, it is still too much.  Do I need to set the balance of this year to an specific amount? How does QBO Payroll handle this?

 

On another note, I have had problems accessing the "solutions" to a previous discussion.  I have changed my username & password to the "Intuit" universal sign in so hopefully this will take care of the problem.

 

Thanks, R K

Solved
Best answer July 15, 2021

Best Answers
Charies_M
Moderator

IRA Max Contribution deduction calculation

Welcome back to this thread, R K.

 

Jumping in to answer your follow-up question about the year to date going over the maximum amount.

 

In QuickBooks Online (QBO), once the payroll reaches the maximum wage limit, QuickBooks automatically stops the calculation. This prevents the YTD from going over the maximum amount where there is no need to take some steps. 

 

You can check the following article for some links about the payroll tasks in QuickBooks Online: 

Should you need additional help in managing payroll contribution deductions or completing any task with QuickBooks, you can always find me here. I'm just one comment away.

View solution in original post

3 Comments 3
MariaSoledadG
QuickBooks Team

IRA Max Contribution deduction calculation

Let me provide you some information on how QuickBooks handles IRA contribution deduction so you'll be guided on what to do, R K.

 

If you want to decrease the amount of IRA  contribution deduction, you can edit the item or amount on the setup page. To do this, follow the steps provided below: 

  1. Select Workers, then select Employees.
  2. Select the employee's name.
  3. Select the pencil icon beside Pay.
  4. Scroll down to the deduction section and select the trash can icon or enter another item or amount.
  5. Click OK.

You can refer to this article: Retirement plan deductions/contributions. Please know that removing a deduction does not delete previously deducted amounts from the employee's paycheck records. I suggest contacting our payroll support so they can help you with the adjustment. Here's how to reach them:

  1. Select the Help menu.
  2. In the Assistant window, enter Talk to a human.
  3. Enter your brief concern in the field.
  4. Type in/click I still need a human until you see the Get help from a human option.
  5. Choose a way to connect with our support.

Also, if you're already able to sign in to your Community profile, you can simply go to the Notifications page to access the solution. You'll just have to click the post, then check if one of the answers indicates that the issue has been solved or if it states the best answer. I've added screenshots for your reference if this is what you mean.


 

 

Additionally, QuickBooks Online has several payroll reports that you can use to view useful information for your business and employees. Learn from this article for your reference: Run Payroll Reports.

 

Please touch base with us if you need anything else about payroll. I'm always right here to get back to you anytime.

R K
Level 2

IRA Max Contribution deduction calculation

Sorry for the delay in my reply.  What I am getting from your solutions is that the best way to handle IRA EE deductions that will reach the max of $13,500 is to change the option from the % to a set amount for the payroll periods remaining in the year.  I assume that QBO Payroll does not adjust the deduction amount automatically and that I need to make this adjustment manually.  This not a big deal, I was curious if there was a automatic safeguard to prevent the YTD going over the max amount.

 

I apparently have a problem finding the solutions in "The Community" once I receive an email.  Could someone advise me on the steps that I'm missing.

 

Thanks, R K

 

 

 

 

 

 

 

Charies_M
Moderator

IRA Max Contribution deduction calculation

Welcome back to this thread, R K.

 

Jumping in to answer your follow-up question about the year to date going over the maximum amount.

 

In QuickBooks Online (QBO), once the payroll reaches the maximum wage limit, QuickBooks automatically stops the calculation. This prevents the YTD from going over the maximum amount where there is no need to take some steps. 

 

You can check the following article for some links about the payroll tasks in QuickBooks Online: 

Should you need additional help in managing payroll contribution deductions or completing any task with QuickBooks, you can always find me here. I'm just one comment away.

View solution in original post

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