Question on deduction for IRA match

The problem on changing the Primary Admin was that the former admin was terminated, and then it was discovered that she had listed herself as Owner, and when the real owner tried to change the Admin, he was given a long runaround, he completed the paperwork and submitted it, and waited 3 weeks for someone to notify him with no response.  When he called, everyone claimed to know nothing about it and couldn't fine any paperwork.  Eventually they found it and then told him it didn't include everything, so he had to go through it all again.  

When that was all done, we tried to ask a question about Payroll, and were then told that Payroll had a separate Admin, and no-one here was listed as Payroll Admin, so we are now waiting for that to change so we can discuss Payroll issues.  Assuming that this paperwork won't be lost.  I'm sorry, it's just so frustrating.

Thank you for the info on IRA.  It sounds like we will eventually need to have admin rights to get into the Payroll setup area to change some of the settings, so we are waiting for approval on that.

For the company match, is there a way to ensure it is not greater than the employee contribution portion? As with the original post we have some employees contributing less than the 3%, but Quickbooks is calculating the match as the full 3%.

For example say the 3% match calculates to $50.  The employee contributes $30, so the match should only be $30, however Quickbooks is entering it as $50.

Hello, lukiegames.

I know a way how to match the employee and employer contributions for the retirement plan.

The amount on a paycheck is calculated by QuickBooks based on how the payroll item is set up. When creating the payroll item, you'll have the option to enter the deduction rate or amount. Let's remove the 3% rate if you enter it on the employee contribution payroll item. I'll show you how.

1. Click the List tab at the top menu bar.
2. Select Payroll Item List.
3. Double-click the payroll item you create for the employee contribution.
4. Click Next until you reach the Default rate and limit section, then remove the percentage.
5. Once done, hit Finish.

If the company contribution still isn't matching with the employee contribution, you can manually edit the amount by clicking on the Open Paycheck Details button.

Check out this resource for more information on creating a retirement plan: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

There's also a report with information on payroll items assigned to liability accounts, deductions, and contributions. I've included a link to an article where you can learn more about it: Run payroll liability balances report.

If you have further questions, drop a comment below. I'll be around to help you.

for Giovann G ......

Thank you for your post.  I will try to look at this.  I am a little confused though.  

The problem we're trying to solve is to make the Company Contribution to IRA not exceed the lower of 3% if pay OR the amount the employee contributes if less than 3%. On the Default Rate and Limit, if we eliminate the 3% in the first box, I understand that the that the percentage in the employee record will be used.  What if it is above 3%?  3% is the maximum that the Company will contribute.  Or what if the employee has a flat amount of say, $900?  Again, the Company Contribution can't exceed 3% of pay, not match the $900.  Unfortunately, since we put in 3% to indicate the maximum amount, QB payroll is assuming it should be 3% regardless of what the employee is contributing instead of doing a dollar for dollar match up to a maximum of 3% of pay.  Are you saying that your solution will do exactly that?

I am hoping that what you describe will do the 3% maximum but match dollar for dollar when less than 3%, but it just seems to me that it won't do that.  The description in the Default rate and limit display box doesn't clearly describe a dollar for dollar match up to a specified percentage limit.

I'm hoping you can explain it to me so I really understand what the choice options will result in should I change them per your first response.  Thank you in advance for your help and for your patience with my lack of understanding.

Yes, Big-Al.

The solution shared by my colleague can help you match your employee and employer contributions. If the amount is different, you can manually edit it on the Review Paycheck page. I'll show you how:

1. Go to the Employees menu and then select Employee Center.
2. Locate the employee's name.
3. On the Transactions tab, find and open the paycheck.
4. Click the Paycheck Detail button.
5. Edit the amount, then click OK.

Aside from that, you can also access the employee profile and edit the contribution amount from there. Here's how:

1. From the Employees menu, select Employee Center.
2. Locate the employee's name, then double-click it.
3. Select the Payroll Info tab.
4. Find the contribution and change the amount.
5. Once done, click on OK.

For more details about setting up benefits, please see this article: Set up a Payroll Item for 401(K), Simple IRA, etc.

Additionally, I've added these articles that'll help you learn how QuickBooks handles taxes for you:

• Learn How QuickBooks Desktop Calculates Taxes
• Learn About Federal and State Payroll Tax Wage Bases and Limits

Please keep us posted if you have additional questions or concerns about this. We want to make sure the setup is accurate.

Charlene,

Thank you for sharing such a simple answer to the question.  Everyone else gave the legalities, you answered the question: How do we have the company contribution NOT exceed the employee's contribution?  You nailed it!!!  

Thank you,

Lori

Hello there, Tru Lori. 

On behalf of my colleague @CharleneMaeF, you're welcome. It's always encouraging to know that one of my colleagues was able to address your concern. The QuickBooks Community will always be around to lend you a hand whenever you need guidance.

We'll be around if you require any further assistance with QBO-related work. I hope you have a pleasant day ahead. Take care!