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Level 1

Payroll deductions for a state sponsered retirment plan, KPERS

 
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QuickBooks Team

Payroll deductions for a state sponsered retirment plan, KPERS

Hi there, @rmfea.

 

Welcome to the Community family. Allow me to help and share some details about payroll deductions for a state-sponsored retirement plan in QuickBooks Desktop. 

 

Are you referring to setting up payroll deductions for a state sponsored-retirement plan? If so, I can walk you through on how to set this up on your QuickBooks. 

 

You'll need to create a payroll item for the said deduction, let me show you how:

  1. From the QuickBooks Desktop menus at the top, click Lists > Payroll Item List.
  2. At the lower left of the Payroll Item List, click the Payroll Item button > New.
  3. Select Custom Setup and click Next.
  4. Select Deduction and click Next.
  5. Enter a name for the item in the Enter name for deduction box and click Next.
  6. In the Liability account drop-down list at the bottom, select the liability account that will be used to track this deduction and click Next.
  7. In the Tax tracking type window, select the tax tracking-type classification that matches your plan type and click Next.
  8. Place a check-mark next to any item(s) in the Payroll Item column that will be calculated after this deduction is taken.
  9. In the Calculate Based on Quantity window, select Neither and click Next.

For more details about this process, kindly check out this article: Set up a payroll item for retirement benefits.

 

In case you need additional assistance throughout the process, I'd suggest giving our Customer Care Team a call. 

 

To do that:

  1. In your browser, navigate to https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose QuickBooks Desktop.
  3. Select the issue or topic.
  4. Click the Green Phone button to see the support number.

Please let me know if you're referring to something else. I'll be around to provide further help. Thank you and have a great week ahead!

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Level 1

Payroll deductions for a state sponsered retirment plan, KPERS

The issues is that this deduction should reduce federal taxable wages but not the state wages. I have not been able to make this happen.

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Anonymous
Not applicable

Payroll deductions for a state sponsered retirment plan, KPERS

Hello again, @rmfea.

 

Thanks for the clarification. Allow me to help share some information about setting up a payroll item for a retirement plan in QuickBooks.

 

If the deduction was meant to reduce the federal taxable wages, then you'll need to choose the tax tracking-type classification that matches your plan type. If you're unsure what to choose as the tax tracking-type, I'd suggest consulting your accountant to verify how the payroll item appears on tax forms.

 

Once you're done verifying, you can always edit the payroll item so you can change the tax tracking-type to the correct one. 

 

Here's how:

 

  1. Go to the Lists menu.
  2. Select Payroll Item List and locate the item name.
  3. Right-click on the item and select Edit Payroll Item.
  4. Click Next twice. 
  5. On the Tax tracking type window, click the drop-down arrow to select the correct tax tracking-type.
  6. Click Next until Finish.

 

 

 

This will get you on the right track. As always, you can contact our friendly Desktop Care Support if you need help with the steps.

 

I'll be right here to help if you have other questions with your retirement plan. Have a good one.

 

 

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Level 1

Payroll deductions for a state sponsered retirment plan, KPERS

I tried this and it did NOT work.  The deduction calculated correctly (it calculated federal taxes based on reduced taxable wages for the KPERS deduction; all other taxes were calculated without the deduction).  But, on the W-2, federal taxable wages in box 1 were not reduced.  And the deduction did not show up in Box 14.  If I use "other" deduction instead of "none" deduction, it DOES show up in box 14, but Box 1 is not reduced by the deduction.  This is really frustrating and KPERS is VERY common in small municipalities, many of which use QuickBooks.

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Anonymous
Not applicable

Payroll deductions for a state sponsered retirment plan, KPERS

Thanks for checking this with us, Nick Novelly,

 

I can add a bit more about how taxes are set up in QuickBooks Desktop.

 

The way your payroll items affect your tax reporting depends on the Tracking Type you selected during the setup. In that case, selecting None for the payroll item does not report the amounts on your tax forms.

 

If you'd like to get this item reported, you'll need to select the appropriate type specific to the requirement of the deduction. QuickBooks provides you detailed information on how this item is treated on the Employees W-2 and other tax forms. Please see screenshot below:

 

 

 

If you're unsure on what tax type to use, I suggest consulting an accounting professional to confirm which works for your books.

 

That should do it, Nick Novelly. Please let me know if you need further assistance. I'm here to help you at any time. Have a great day!

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Level 1

Payroll deductions for a state sponsered retirment plan, KPERS

I am an accounting professional.  If I use "Other" it does (as you say) correctly report the deduction in box 14 with the title "KPERS".   And when calculating federal withholding, it correctly reduces wages by the KPERS deduction before calculating the amount of federal withholding.  But on the W-2, box 1 is not reduced by the amount of the KPERS deduction.

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Anonymous
Not applicable

Payroll deductions for a state sponsered retirment plan, KPERS

Hello, @Nick Novelly.

 

Thank you for the response. Yes, you're correct, this tax tracking type will not reduce the amount on box 1.

 

There are other tax tracking types you can choose based on your retirement plan. You'll need to look for another tax tracking type for this plan that'll reduce the amount on W-2 box 1.

 

Keep us posted if you have other questions. Have a good one.

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Level 1

Payroll deductions for a state sponsered retirment plan, KPERS

The other tax tracking types (I will take a look) seem to want to put something in box 12 (for example a 401k deduction).  But we need Box 1 (and only box 1) reduced AND to have a reported amount in box 14.  Can you direct to the "tax tracking type" where this can be accomplished?

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Level 1

Payroll deductions for a state sponsered retirment plan, KPERS

I checked each tax tracking type for deductions and there is no tax tracking type that will report the total deduction amount in box 14 AND reduce box 1 for reported wages.  We need to report the Kansas Public Employee Retirement System (KPERS) amount as required by the Kansas Department of Revenue and I do not see where QuickBooks provides a means to report it correctly.  I think you need to have your programming department provide a means to correctly report this common deduction for municipalities in the State of Kansas.  If you can have your systems people contact me I can provide the exact requirements (which are summarized above).

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QuickBooks Team

Payroll deductions for a state sponsered retirment plan, KPERS

Hi there, Nick. 

 

KPERS or other Public Employee Retirement Plans are not yet supported in QuickBooks Desktop Enhanced Payroll. You might want to manually enter the amounts in Box 14 to report the retirement plan. 

 

While our engineers aren't able to directly contact you about creating a tax tracking type for KPERS, I'll take note of this and send it to them. We also have an option of sending feedback directly to our engineers. Just go to the Help menu and click Send Feedback Online.

 

Let me know if you need anything else by adding a reply to this thread. I'll get back here to help you again. 

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