How do I change the retirement contribution from being calculated after other payroll deductions?

A warm welcome to the Community, CB46. Calculating the retirement contribution after other payroll deductions is easy.

You can follow these steps to change the tax options on the retirement contribution:

1. On the left pane, select Payroll, then click the Employees tab to locate your employee.
2. On an employee's profile, scroll down to Deductions & contributions and tap Edit.
3. Press the pencil icon of the contribution you'd like to change.
4. Under the Tax options section, choose Post-tax to have premiums deducted after taxes.

Please know that you need to sign in as an administrator to make the changes. Additionally, I recommend consulting an accountant to ensure accurate accounting records.

If you'd like to remove a retirement plan item or learn about its limits, refer to this article: Set up or change a retirement plan.

Once done, you can now start generating paychecks for your employees: Create and run your payroll.

Let me know if you have additional questions about managing payroll contributions and deductions. I'm always available around the clock to assist you further. Stay safe.

The issue is that the retirement should be calculated based on the gross income. The calculation that QB is coming up with, is based off of the gross pay AFTER the health insurance and accidental insurance premium is taken out. 

Good morning, @CB46. 

Thanks for reaching back out on this thread. 

You can either choose to have the premium deduct after or before taxes. My colleague shows a visual that has both options in the post above. 

However, if you're still unsure of what steps to do next, I recommend consulting with you accountant to be sure. 

If you have any further questions after speaking with your accountant, don't hesitate to come back. We're always here to lend a helping hand. Take care! 

I do have pre-tax selected. For example: if gross pay is $1,000, the health insurance premium is $50 and accidental is $5, the retirement is being based off of $945 and not $1,000. Everyone does a percentage of their pay so if they're just doing 3%, the amount that should be taken out is $30, but only $28.35 is being taken out. 

I do have pre-tax selected. For example: if gross pay is $1,000, the health insurance premium is $50 and accidental is $5, the retirement is being based off of $945 and not $1,000. Everyone does a percentage of their pay so if they're doing 3%, the amount that should be taken out is $30, but only $28.35 is being taken out. 

Hi there, CB46.

I appreciate you returning to the thread and asking further questions regarding the retirement contribution in QuickBooks Online (QBO). Let me share insight regarding this matter.

The pretax retirement plan helps you save money for retirement while reducing your taxable income. However, before it deducts the retirement contribution, it will first take any other pretax deductions you may have, such as health insurance premiums or flexible spending account contributions. In your example, your total gross income after the other pretax deductions is $945. Then, the pretax retirement plan will deduct 3% of that amount, which is $28.25. 

Furthermore, you can refer to this article regarding setting up the retirement plan in QBO: Set up or change a retirement plan.

In addition, learn how to run payroll in your QBO: Create and run your payroll.

Comment below if you have more questions regarding your retirement plan deductions in your QBO. I'll be here to answer them as soon as possible.