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:
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:
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!
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.
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.
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.
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!
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.
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.
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?
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).
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.