Payroll Deductions in Employee file not processing correctly through scheduled payroll processing

@ugotmelw  It is possible that you are experiencing a conflict between two different limits; I am speaking here from my experience with Desktop, not Enterprise, so take this with a grain of salt.

To Point 1: In Desktop, deductions have two places to put a limit. The first is in the setup of the payroll item itself. The second is in the individual employee's information.

If the limit field in the individual employee's information is left blank, the limit in the payroll item setup will be used.

The opposite applies if the limit in the payroll item setup is left blank.

If a limit exists in both fields, the lower limit will be used.

As a result, it is possible that you may have tripped a lower limit you are not aware of, probably set up within the problem employees' individual information.

To Point 2:

The first thing that comes to mind is what the Limit Type is set to in the payroll item setup. I've had many clients have issues with this in the past; they unknowingly reused a payroll item that had been used in years past, and the Limit Type was set to One-time limit.

Anything else would be speculation on my part for now; it may help if you provide more information about how you set up the related items in your company file.

Thank you for visiting the QuickBooks Community, Ugotmelw. I'm here to assist with your inquiries regarding employee payroll deductions within QuickBooks Desktop (QBDT).

There are various reasons why your payroll deductions and contributions aren't appearing in your Employee Summary. One of them is that you have already reached the maximum limit. As a result, they only appear in the Year-to-Date column. I recommend reviewing your payroll item setup to verify the limit that has been established for your employee.

Moreover, in any event, if the employee's year-to-date (YTD) deduction falls below the limit specified in their record, check the limit of the payroll item. With that, if the payroll item's limit is lower than the limit on the employee record, then the payroll item's limit will be applied. If this is causing an issue, you can prevent it from recurring by removing the limit from the payroll item.

Next, to resolve the error about your employee's 401k loan balance. Let's verify the original setup of the 401K loan in your employee's profile and ensure that all limits and repayment terms are correctly entered. To do so, you can follow the steps below:

1. Open your QBDT account.
2. At the upper tab, select Employees.
3. Go to Manage Payroll Item, then choose View/Edit Payroll Item List.
4. Look for your 401k payroll item, then click on it to review the setup.

If your setup is correct, let's review the transaction history for the 401(k) loan to check for any incorrect entries or adjustments. You can generate the Audit Trail report to view any changes made in your QuickBooks Desktop (QBDT).

Here's how:

1. In your QBDT, go to Reports.
2. Select Accountant & Taxes.
3. Choose Audit Trail.

Furthermore, to manage your employee payroll deductions you can refer to this article: Set up, change, or delete employee-paid payroll deductions.

To gain better insight into your business finances, you can run payroll reports for information about your business and employees. You can refer to these resources:

• Run payroll reports
• Create a payroll summary report in QuickBooks
• Customize payroll and employee reports

Let me know if you have additional questions about QBDT payroll deductions. I'll be here to answer them as soon as I get your reply.

Thank you for the ideas....unfortunately the limits are correct in both the payroll item setup - and we let that feed to the employee payroll deduction item setup.  I do appreciate the reply though because maybe someone else needs to know that - I learned the hard way !

Thanks for checking back in with us, @ugotmelw. 

I appreciate you for taking the time to confirm it was the limits causing the issue. If you'd like, you can always submit suggestions to our Product Development Team. Our team reviews all feedback and considers all responses for future updates. You can use the link I'm including below to send your suggestion. 

• Send Feedback in QuickBooks Desktop

Please feel free to reach out any time you need a helping hand. Have a good one! 

@Tori B  "I appreciate you for taking the time to confirm it was the limits causing the issue."

Yeah, about that.

@ugotmelw  said "Thank you for the ideas....unfortunately the limits are correct in both the payroll item setup - and we let that feed to the employee payroll deduction item setup."

Maybe have another cup of coffee and read it again; I've bolded the important part.

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To @ugotmelw  You may be better off having someone look at it in person; would go a bit quicker than having back and forths with image sharing on here.

Hi Tori - I was not acknowledging that it was the limits causing the issue.  The limits are correct.  I was thanking the individual who replied first for doing so.  I'm about to reply to the QB rep and let them know that the limits are correct and so that is not what is causing the issue.