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Level 1

Retirement Plan deductions

My retirement contributions are based on a percentage of base pay only - no overtime or other pays can be used in the calculation. When I set up the retirement deduction in QB, it seems to automatically take a % of Gross Pay or Net Pay. It is not letting me exclude overtime or other pays. Can this be done in QB?  If so how?

3 Comments 3
QuickBooks Team

Retirement Plan deductions

Hi Riverapc,


The reason why some deductions deduct differently it's because it depends on how your payroll items are being set up. Let me guide you on to review the existing deductions' settings first.

  1. Go to the Lists menu and then click the Payroll Item List
  2. Click the Payroll Item drop-down arrow and then click New.
  3. Choose EZ Setup, then click Next.
  4. Select the type of item you want to set up.
  5. Click Next.
  6. Follow the onscreen instructions.
  7. Click Finish.

Once done, the new payroll item appears in the Payroll Item List. 


Here' s an article for more information on how to edit payroll items: Edit Payroll Items Used On Paychecks.


Please check this article for additional information about payroll: Get Started With Payroll.


 Reply to this thread if you have any other concerns. I'll always be here to help you anytime. 

Level 1

Retirement Plan deductions

This doesn’t answer my problem. To be clearer. My pension plan  contribution is 9.5% of base pay only. QB is applying the 9.5% to Gross Pay which includes overtime and additional pay from a grant. How do I exclude those other pays from the calculation?  I don’t see any way in the set up of the contribution rate to exclude certain pays. 


Retirement Plan deductions

I appreciate the details, @Riverapc.


I have some clarification to provide regarding your question on excluding the overtime and additional pay when calculating your pension plan contribution. You can calculate this item based on quantity instead of Net or Gross. 


Just edit the payroll item created. Here's how:

  1. Go to Lists and select Payroll Item List.
  2. Locate and double-click the Pension Plan to open the Edit payroll item window.
  3. Click Next until you reach the Calculate based on quantity screen.
  4. Select Calculate this item based on quantity.
  5. Tap Next, then Finish.


Doing this will exclude those other pays from the calculation on your next payroll run.


I'd still recommend consulting a tax adviser regarding this change to ensure you are setting this up correctly. You may check this related article regarding the ideal retirement setup in QuickBooks: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).


Also, if you need to make an adjustment to correct company contributions, you can check this helpful guide: Adjust payroll liabilities in QuickBooks Desktop.


 Please don't hesitate to reach out to me here should you have any additional questions or concerns. Thanks for coming to the Community, wishing you a safe and productive rest of your day.

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