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Join nowHello,
New QB user! I've ran through this topic on a couple threads and I'm still not seeing a well explained solution - at least not for a newbie like me :) We currently have a simple IRA ER match up to 3%. We are moving to a 401k, safe harbor QACA match with the following compensation match rules:
My question. How would I go about setting this up correctly? I understand once I've created a payroll item I just assign it to each EE. I'm struggling how to actually create the payroll item so it reflects the different contribution rates based on EE contribution %.
Thanks!
Solved! Go to Solution.
Thanks for posting your concern here in the Community, @jerbaldw.
Before we start, let me thank you for choosing QuickBooks Desktop in managing your business.
Let me help you in setting up benefits for the 401(k) payroll item in your company file. You can use the Custom Setup method when creating the item. This way, it would be easy for you to edit it once need to create certain changes.
Here's how:
For more details, you can check out this article: How to set up the 401 (K) retirement benefits in QuickBooks. This will also include the process on how to add the new payroll items to your employee record.
You can also run the payroll summary report to see what you've paid out.
This will show a quick view of your payroll totals, including employee taxes and contributions.
Additionally, you can check our QuickBooks Desktop user guide. This will provide you the resources that you needed in managing your account.
I'm still here if you have other questions regarding your payroll service. Just post your questions here, I'll respond as soon as possible.
Thanks for posting your concern here in the Community, @jerbaldw.
Before we start, let me thank you for choosing QuickBooks Desktop in managing your business.
Let me help you in setting up benefits for the 401(k) payroll item in your company file. You can use the Custom Setup method when creating the item. This way, it would be easy for you to edit it once need to create certain changes.
Here's how:
For more details, you can check out this article: How to set up the 401 (K) retirement benefits in QuickBooks. This will also include the process on how to add the new payroll items to your employee record.
You can also run the payroll summary report to see what you've paid out.
This will show a quick view of your payroll totals, including employee taxes and contributions.
Additionally, you can check our QuickBooks Desktop user guide. This will provide you the resources that you needed in managing your account.
I'm still here if you have other questions regarding your payroll service. Just post your questions here, I'll respond as soon as possible.
Thank you!
Our match is doubling when paid out. How can we link the employer contribution to the payroll liability when recording the payment transaction?
I can help you with setting up your employer contribution and payroll liability, @tracy1016.
You’ll just have to link the employer contribution to the payroll liability by setting it up correctly.
Let me show you how:
For detailed guidance, check this article: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).
You can also refer to the following article to help you use a liability adjustment to correct employees’ year-to-date (YTD) or quarter-to-date (QTD) payroll info: Adjust payroll liabilities in QuickBooks Desktop.
I'm always here if you need further help with your account. Take care and have a great rest of the day!
Hello, I have the same scenario as mentioned above. Do I put 3.5% in the box that's highlighted in the example? Also, what do I enter in the limit type box or do I leave that blank?
Hello Angela Griffith,
Thanks for reaching out to the QuickBooks Community! It would be best to verify that information with your accountant. The example mentioned above does show which box it should go into, but we cannot share how much goes in there. If you don't have an accountant, no worries! We offer a ProAdvisor service. Simply enter your zip code and connect with experts within your area. Many offer a free consultation as well!
Let me know if there is anything else I can do for you. I will be around. Take care for now.
How do you do this for Quickbooks online?
Thanks for checking in the Community space, kkbarnard.
If you need to set up a retirement plan deduction or a company contribution in QuickBooks Online Payroll to track and tax it appropriately, there are different types of retirement plans supported in QuickBooks. QuickBooks provides different types of retirement plans. You'll have to make sure to determine which plan you want to set up for your employees and review its contribution limits.
To choose a retirement plan, you can check out with your plan provider for details or visit the IRS website to learn more. Currently, these are the supported retirement plans in QuickBooks:
Just identify which plan you want to set up for your employees and review its contribution limits. To learn more about retirement plans, visit the IRS website. Once done, here's how to set up a retirement plan deduction or a company-match contribution item:
To know more information on when a retirement plan is tax-deferred or taxable, go through this article for more information: Set Up or Change a Retirement Plan. Additionally, a contribution to a retirement plan can take the form of either after-tax or deferred compensation. Tax laws impose a limit on the annual contributions that both employees and employers can make. For more details, read this reference: Understand retirement plan contribution limits.
Generating reports to track data is a breeze. To do so, feel free to browse this guide for the instructions: Run payroll reports.
We always aim to serve you best. I'm always ready to deliver further assistance in navigating payroll to achieve your goals. Have a good day ahead!
Please help! have this same problem but how do I actually out the tiered match in? Does it go in the Employee's section. The 3% is fine but where do I put the $.50 per dollar match on the other 2%?
I appreciate you for bumping into this thread, Jvholland.
With a safe harbor basic match, the company matches 100% on the first 3% of deferred compensation, plus a 50% match on the next 2% of deferred compensation. Allow me to go into detail about this matter.
To address your concern, you'll have to manually calculate and enter the $.50 per dollar match when you create a paycheck. However, I still suggest consulting your accountant for advice on how to properly handle this matter so your report will reflect accurate data.
In addition, you can check out this article to learn how to run, print, and customize payroll reports in QuickBooks Desktop Payroll: Run payroll reports
If you have further concerns about managing your payroll in QuickBooks Desktop, feel free to come back here in the Community. We're here to assist you 24/7.
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