Roth 401K Calculations

BHGSBookkeeper · ‎March 13, 2023

I have the Roth 401K set up to calculate a percentage of gross earnings for our employees. I use timesheets to create the paychecks, then once the paychecks are created, there are sometimes additional pay items added to the employees earnings for things like good customer ratings, customer calls, etc. These items change the gross pay amount. How can I get the Roth 401K to automatically recalculate the percentage based on the new gross earnings amount? Usually, I have to manually calculate the Roth 401K amounts and replace the amounts on the check stubs with the correct amounts.

BigRedConsulting · ‎March 13, 2023

Every time you add something to a paycheck, the paycheck re-calculates. So, in your case, for some reason the result is the same after recalculation.

If the additional items you mention are additions, are they listed on the other table on the paycheck above the 401k or after? If after, then their amounts aren't included in the deduction's calculation. In this case, if you put them before the 401k, then does the item update as expected?

BHGSBookkeeper · ‎March 14, 2023

Hi. Thanks for the response.

On the pay stub, the additional items added after the check is created are under Earnings and Hours. The 401K Roth is below that under Deductions From Gross.

In QuickBooks in the Paycheck Detail, some items are listed under Earnings, and some items are listed under Other Payroll Items both above and below the 401K Roth. I will try some scenarios to figure this out. Just to make sure, you're saying that anything I want the 401K Roth calculated on should be above the 401K Roth in the Item Name?

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