Can anyone help me? I am trying to add a after tax Roth account and it keeps taking it out pretax.

It's my pleasure to help you add the after-tax Roth account, @Cstephen_Manager.

To ensure that it will not be taking it out pretax, let's choose the category when setting up a Roth 401(k) retirement plan. A Roth 401(k) combines features of the traditional 401(k) with those of a Roth IRA. But like a Roth IRA, contributions are made with after-tax dollars.

Let me show you how:

1. In QuickBooks Online Payroll, select the Payroll menu, then choose Employees.
2. Choose the employee's name.
3. In the Deductions & Contributions section, click Edit.
4. In the Deductions for Benefits section, select Add a Deduction.
5. Select Retirement Plans as the category and After-tax Roth 401(k) as the type.
6. Enter a description.
7. Lastly, select Ok.

For additional insight, please refer to this article: Set up a Roth 401(k) plan. It covers general information about the retirement plan.

In addition to that, I've attached some articles to help you manage payroll deductions and contributions in QuickBooks:

• Retirement plan deductions/contributions.
•  IRS Publication 4530

Feel at ease to get back to this thread if you have other questions about adding after-tax in QuickBook Online. I'll be around to assist you again. Keep safe and take care.

Hi, @Cstephen_Manager.

Hope you’re doing great. I wanted to see how everything is going about adding the after-tax Roth account you had concerned you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

How do you handle the issue of the Roth being deducted from gross instead of net on the desktop payroll?

Mine has been working just fine for a long time and all of a sudden this week, the deduction changed. The only thing I've done is used the updates. Why would that change how the Roth was deducted? I'm a bit confused as to why all of a sudden, this would change.

The update may have reset the Roth item, Cathy.

You can open update it to net pay when needed. Here's how:

1. Go to the Lists menu, the Payroll Item Lists.
2. Locate the item and double-click it.
3. Click the Next button until you see the Gross vs net window.
4. Change it to net pay.
   
5. Click Next, then Finish.

If there's a need to correct your payroll transactions, you can record a liability adjustment to clear it out. Follow the steps in this article for guidance: Adjust Payroll Liabilities in QuickBooks Desktop. 

You'll also want to check out this article on how to see all the remaining balances you have in QuickBooks: Run Payroll Liability Balances Report. 

Get back to me if you have follow-up questions about this by commenting below. I'll be right here to provide answers to your concerns.

I need assistance setting up a ROTH IRA in QuickBooks Desktop.  Some employees have dollar amounts and some have percentages as their deferrals.  QB desktop does not give me the option of selecting ROTH IRA as the type.  I haven't been able to find a lot of nitty gritty details on setting this up properly.

Hello @jray2629,

I hear you and I'm here to ensure you're able to setup a retirement plan in QuickBooks Desktop. But before that, can I ask you a question about the setup you would like to accomplish? Saying you're unable to select ROTH IRA, may I know what type of item or ROTH retirement plan is this?

Keep me updated in the comments below. Hope to hear from you as soon as possible. Take care and stay safe!

It is just a regular ROTH IRA for after tax deductions.  It is not a ROTH 401k.  I initially set it up as ROTH IRA with NONE for the tax tracking since a ROTH IRA was not an option here.  No taxes affected. Calculate on Gross Pay.  

Hello there, jray2629.

Thanks for getting back to us. Allow me to hop in and help ensure you can set up a retirement plan in QuickBooks Desktop (QBDT).

Here are the supported retirement plans available in QBDT:

• 401(k) / 401(k) catch-up
• Simple 401(k) / Simple 401(k)
• 403(b) /403(b) catch-up
• SARSEP / SARSEP catch-up
• Simple IRA / Simple IRA catch-up
• After-tax Roth 401(k)
• After-tax Roth 403(b)

Please note that after-tax Roth plans calculate on your employees' gross wages and are subject to all taxes at the time of contribution per IRS regulations.

Currently, Roth IRA is unavailable which is why you're unable to select it when setting up retirement plan for your employees in QBDT. I can see how having this option would be helpful for you and your business. I suggest sending feedback directly to our product developers. They're always looking for ideas to consider on how to improve QuickBooks.

Here's how to submit feedback:

1. In QBDT, go to the Help menu at the top.
2. Click Send Feedback.
3. Choose a category and enter your comments or suggestions.
4. Tick Send Feedback when once done.

To learn more about managing and setting up retirement plans in QBDT, consider checking out these articles:

• Set up a retirement plan.
• Set up state-mandated retirement plans in QuickBooks Payroll.

I also recommend visiting our website for more tips and other resources you can use in the future: Self-help articles.

Leave a comment below if you have follow-up questions about this or anything else QuickBooks. I'm always here to help. Stay safe.

Based on what I'm understanding from your input;  how I have the ROTH IRA set up should work.  It has NONE for any tax effects and it is computing on the gross.  It just doesn't have one of those "supported" plans selected for the tax tracking type.

Thank you for following up, jray2629.

That's correct. the retirement plans provided by my colleague @FritzF above, are the currently supported plans in QuickBooks Desktop Payroll.

In terms of tax tracking type, I'd recommend consulting a payroll advisor to assist you in setting up a Roth IRA contribution in QuickBooks Desktop.

You can also find more information about Roth IRAs by visiting the IRS website: Roth IRAs.

If you like to learn more about the supported plans in QuickBooks Desktop, you can check out this article: Understand retirement plan contribution limits.

Feel free to post in the Community or tag my name in your next comment for other questions about retirement plans in QuickBooks. I'll be here to check on your response. Have a great day!

Is there After-tax Roth 401(k)-catch up I can select?

Thanks for joining here, @Gkp Wendy. Yes, there is. Let me help you in setting up the 401(k) Catch-up.

Before we begin, ensure not to edit or delete the prior 401(k) as it will be the basis when QuickBooks Online Payroll calculates the catch-up.

Additionally, the system will calculate it once you reached the 401(k) limit.

To review the setup, ensure also to set an amount to deduct per paycheck. Here's how:

1. Go to the Payroll menu, then select Employees.
2. Click the employee's name, then click Edit employee.
3. From the deductions section, select + Add/edit deductions.
4. Locate the 401(k) Catch-up you added and click the Edit (Pencil) icon.
5. Under the Employee deduction section, choose either Calculated as Flat amount or Percent of gross pay. 
6. Enter the corresponding amount or percentage.
7. Click Save.

If you're contributing to this retirement plan, ensure to fill out the Company contribution section.

Here are some of our helpful articles for your reference on setting up the deductions in QuickBooks Online Payroll:

• Retirement plan deductions/contributions
• Set up voluntary deductions in Online Payroll

Feel free to come by and post some more of your 401(k) Catch-up concerns. I'll be there to guide you again. 

How do I set-up Roth 401K so it taxes out taxes in QB Desktop?  All the instructions show how to add if using QB online which isn't helpful.  

I appreciate you joining this thread, kcarmody97.  I'll take it from here and provide additional clarification on your concern about setting up the Roth 401(k) contributions in QuickBooks Desktop.

To clear out some confusion, the OP is a QBO user, that’s why the thread says so. After-tax Roth plans calculate on your employees' gross wages and are subject to all taxes at the time of contribution per IRS regulations. The best way to add this is by creating an item for this plan.

Here’s how: 

1. Go to Lists, then Payroll Item List.
2. Select Payroll Item ▼ dropdown, then New.
3. Click Custom Setup, then Next.
4. Choose between Deduction or Company Contribution, then Next.
5. Enter the name of item, then select Next.
6. Select the name of your retirement plan provider, or add it, and enter the account number. In the Liability account field, select the account that tracks the deduction or contribution to be paid. Select Next.
   • For company match items, in the Expense account field, select the account that you want to track the item. Select Next.
7. In the Tax Tracking Type window, select the applicable retirement plan. Tap Next twice.
8. Under Calculate based on quantity, select Neither and select Next.
9. Leave Default Rate and Limit fields blank. You can add the rate and limit when you add the item to the employee profile.
10. Hit Finish.

After that, let’s add the item you’ve created for the Roth 401(k) to the employee profile. I’ll show you how:

1. Go to Employees, and then select Employee Center.
2. Select your employee.
3. Select Payroll Info, then add the retirement plan items in the Additions, Deductions, and Company Contributions section.
4. Enter the amount per period and the limits.
5. Select OK.

Once done, go to the Step 2: Set up a retirement plan deduction or a company-match contribution item then select QuickBooks Desktop Payroll and proceed to the Step 3: Ensure the deduction or contribution shows up in the employee’s paycheck in this article: Set up a retirement plan.

If you need some reference on setting up Roth-related plans, we can take a look at this article: Set up Roth 401(k) and Roth 403(b), and Roth 457(b) plans. 

Ready to take care of your taxes for the next quarter? This article has all the steps you need to e-pay and e-file your taxes and forms: E-file and e-pay federal forms and taxes in QuickBooks Desktop Payroll Enhanced.

Stay in touch with me how it goes on your end. Feel free to click the Reply button below if you have follow-up concerns. I'm always here to help. Have an awesome day!

I am trying to set up a Roth IRA deduction also.  Were you able to get your issue resolved? 

I understand how important it is to set up a Roth IRA deduction in QuickBooks, Flooring-123.

As of now, this retirement plan isn't available in the program. To know the plans that are supported,  I've listed them below:

• 401(k) / 401(k) catch-up
• Simple 401(k) / Simple 401(k)
• 403(b) /403(b) catch-up
• SARSEP / SARSEP catch-up
• Simple IRA / Simple IRA catch-up
• After-tax Roth 401(k)
• After-tax Roth 403(b)

Since this option isn't added yet, I'd recommend sending feedback directly to our Product Development team. This helps us improve your experience and the features of the program. 

Here's how:

1. Go to the Help menu and then select Send Feedback Online.
2. Choose Product Suggestion.
3. Add the type of feedback.
4. Type in your feature suggestion (Roth IRA deduction).
5. Once done, click Send Feedback.

For your visual reference, I've attached some screenshots below.

To learn more about managing and setting up retirement plans, please consider checking out these articles:

• Set up a Retirement Plan
• Set up State-mandated Retirement Plans in QuickBooks Payroll

Additionally, I've added an article that'll help you make sure your retirement plans are added accurately to the program: Understand Retirement Plan Contribution Limits.

Please let us know if you need additional assistance managing your payroll deductions in QuickBooks. We're always here to help you out.

Yes.  I ended up calling QB and they tried to help set-up the account.  It still wasn't taking out the proper taxes, but once I knew the basic guidelines, I was able to figure it out myself.  

If you don't mind my asking; did you have to select a "tax tracking type"?  If so, what did you choose?

I just discovered all of my after-tax Roth contributions in payroll online are calculating it pre-tax. I have "After-Tax Roth 401K" selected. Why is it calculating it based on pre-tax gross amount?

I'm here to ensure it will calculate the after-tax Roth contributions, @CG42.

Since you selected the correct type, but pre-tax is still calculated, we can delete and recreate the salary.

To delete one, here's what you need to do:

1. Proceed to Payroll, then Employees.
2. Click Paycheck list.
3. Choose the paycheck(s) you'd like to delete or void, then select Delete or Void.
4. Click Yes.

Once done, recreate the paycheck with the after-tax Roth contributions. For detailed steps, please see this article: Create and run your payroll.

In addition to that, I've attached some articles to help you manage payroll deductions and contributions in QuickBooks:

• Retirement plan deductions/contributions.
•  IRS Publication 4530

Feel at ease to get back to this thread if you have other questions about adding after-tax in QuickBook Online. I'll be around to assist you again. Keep safe and take care.

Can u please explain how u did it.

QB support is of no help...they simply do not have the capability to do the same.

Irrespective of a percent of gross pay or a flat amount, the dollar amount withheld is always pretax. So inputting that as post tax in the retirement funds will be inaccurate.

As I see it, the employee needs to change to pretax contribution...to keep everything clean and simple.

Unless u have figured a way to go around it.

Please do respond.

Thanks.

Did anyone get this resolved? I am trying to setup a ROTH IRA in desktop to adhere to colorado secure savings program. I just keep getting told ROTH IRA is not an option in desktop

Hi there, angelarenee31.

Thanks for joining this conversation. I'm here to share information about the ability to set up Roth IRA in QuickBooks Desktop (QBDT).

As of now, the option to set up Roth in QBDT is currently unavailable. Below are the supported retirement plans available:

• 401(k) / 401(k) catch-up
• Simple 401(k) / Simple 401(k)
• 403(b) /403(b) catch-up
• SARSEP / SARSEP catch-up
• Simple IRA / Simple IRA catch-up
• After-tax Roth 401(k)
• After-tax Roth 403(b)

I can see how having this option would be helpful for you and your business. We'd love to hear your input. I recommend leaving feedback to notify our engineers about the feature you need. This way, they can consider adding it in the future updates.

Here's how to submit feedback:

1. In QBDT, go to the Help menu at the top.
2. Click Send Feedback.
3. Choose a category and enter your comments or suggestions.
4. Tick Send Feedback when once done.

In case you need it, I'll also add these articles that tackles managing and setting up retirement plans in QBDT for future reference:

• Set up a retirement plan.
• Set up state-mandated retirement plans in QuickBooks Payroll.

Please post again or leave a comment below if you have more questions about this or anything else. I'll be here to assist. Take care.

Does anyone know how to do this ^^^^ in QBO?