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Level 2

QB Setup for 401k Employer Match with tiers

Our company for the upcoming year is offering a 3% match on employee 401k contributions and a 50% match on anything above 3% with a max of up to 5%  I'm attempting to set this up in payroll lists and QB seems to be limited and doesn't allow tiers.  Does anyone know how to work around this? Any help would be appreciated.

 

Thanks!

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Best answer 12-11-2018

Best Answers
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Level 15

QB Setup for 401k Employer Match with tiers

This is what you asked: "We set up one payroll list item, 401k match for the 3% then two others for 50%  I was hoping for something a bit more streamlined."

 

You asked for Tiers. Think through the same way you would Calculate it. Step by step.

 

And no, you don't need More Items, to enter specific amounts. You enter No Value or % in Payroll Item setup; put each employee's value on their Payroll Setup record. Example:

 

My contribution is 3% and yours is 5%. That's the Same Payroll item, but in edit My Name, it is set with My amount. In edit Your Name, you see Your amount.

 

One Contribution item is all you need.

One Mach item is all you need, unless you want to see it as Tiers, which is what you first asked. Now you seem to want it Combined. It's your choice.

View solution in original post

5 Comments
Highlighted
Level 15

QB Setup for 401k Employer Match with tiers

Make more payroll items. The Match is a Company Contribution; just make more of them, if you need more math to happen.

Example:

If I am over 50, you would either increase the limit on my item, or add that Additional Amount Allowed as its own item.

Highlighted
Level 2

QB Setup for 401k Employer Match with tiers

Hi qbteachmt,

 

Thank-you for your reply.  When I spoke to a QB payroll rep, the suggestion was to do what I believe you're also suggesting.  We set up one payroll list item, 401k match for the 3% then two others for 50%  I was hoping for something a bit more streamlined.  Doesn't seem like this is an option with QB.  Also, when I added these 401k match items to payroll then created a paycheck, it did not track any amount for the 401k matches. Do you know if there is a reason for this?  I thought the paystub would reflect the amounts that the company is contributing that pay to the employee's 401k account.  

 

Thanks again for your reply

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Level 2

QB Setup for 401k Employer Match with tiers

Our company is doing a 3% match on the first 3% of employee 401k contributions.  Then the employer will match 50% of the next two percentages maxing at 5%  So a total max that the company will contribute is 4%

I just read one of your other comments to someone else with a similar question.  Based on that comment, I believe I should be doing the following;

Calculation: 

Ratio Employee:Employer
4(3+1 to 3+.5) Create a payroll list item for 401k match of 3.5%
5(3+2 to 3+1) Create a payroll list item for 401k match of 4%

And have another payroll list item of 401k match of 3%

 

This makes much more sense then what I was instructed to do.

 

Highlighted
Level 15

QB Setup for 401k Employer Match with tiers

This is what you asked: "We set up one payroll list item, 401k match for the 3% then two others for 50%  I was hoping for something a bit more streamlined."

 

You asked for Tiers. Think through the same way you would Calculate it. Step by step.

 

And no, you don't need More Items, to enter specific amounts. You enter No Value or % in Payroll Item setup; put each employee's value on their Payroll Setup record. Example:

 

My contribution is 3% and yours is 5%. That's the Same Payroll item, but in edit My Name, it is set with My amount. In edit Your Name, you see Your amount.

 

One Contribution item is all you need.

One Mach item is all you need, unless you want to see it as Tiers, which is what you first asked. Now you seem to want it Combined. It's your choice.

View solution in original post

Highlighted
Level 2

QB Setup for 401k Employer Match with tiers

This has been very helpful.

 

Thank-you! 

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