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EPSEA
Level 1

Tracking Cash Balance Plan Contributions in QB Online / Online Payroll

I'm trying to track cash balance plan contributions that will be made in January 2021 for the 2020 fiscal year.  There isn't a deduction / contribution type for a cash balance plan and QB Online / Online Payroll doesn't let you add new deduction / contribution types.  See the attached file for the options that they have.

 

The way it should work for example is if an employee earns $50,000 per year, they are entitled to a $500 cash balance contribution paid by the company into an investment account on their behalf.  

 

1) Is there a best practice how to do this in QB Online? 

2) The contribution is not taxable to the employee, yet it is an expense for the company.  If it does end up being setup as a contribution in the Payroll area of QB Online, can it be setup so it doesn't show on their W-2.  Cash Balance plans are not taxed until money is withdrawn from the plan.

 

Thanks,

EP

 

 

Solved
Best answer December 24, 2020

Best Answers
Rose-A
Moderator

Tracking Cash Balance Plan Contributions in QB Online / Online Payroll

Welcome to the Community, EPSEA.

 

I appreciate the screenshot you've provided. Let me share some information regarding the supported retirement plans in QuickBooks Online.

 

Tracking Cash Balance Plan is currently unavailable in QuickBooks Online. Intuit only supports the following retirement plans:

 

  • 401(k
  • SIMPLE 401(k)
  • 403(b)
  • SARSEP
  • SIMPLE IRA
  • Roth 401(k)
  • Roth 403(b)

For now, I'd suggest consulting an accountant to help you choose the closest type on the lists. To know more about what are these plans for, check out this article: Retirement plan deductions/contributions. On the same link, you'll find additional details on how they're reported on the employee's W-2.

 

Additionally, I recommend visiting this write-up: Supported pay types and deductions explained. It contains the descriptions of the supported pay types and deductions in QuickBooks Online Payroll as well as how each impacts federal taxes and forms.

 

I'm only a post away if I can be of additional assistance or if you need more help with setting up a retirement plan in QuickBooks Online. Wishing you a wonderful rest of the week. Merry Christmas!

View solution in original post

3 Comments
Rose-A
Moderator

Tracking Cash Balance Plan Contributions in QB Online / Online Payroll

Welcome to the Community, EPSEA.

 

I appreciate the screenshot you've provided. Let me share some information regarding the supported retirement plans in QuickBooks Online.

 

Tracking Cash Balance Plan is currently unavailable in QuickBooks Online. Intuit only supports the following retirement plans:

 

  • 401(k
  • SIMPLE 401(k)
  • 403(b)
  • SARSEP
  • SIMPLE IRA
  • Roth 401(k)
  • Roth 403(b)

For now, I'd suggest consulting an accountant to help you choose the closest type on the lists. To know more about what are these plans for, check out this article: Retirement plan deductions/contributions. On the same link, you'll find additional details on how they're reported on the employee's W-2.

 

Additionally, I recommend visiting this write-up: Supported pay types and deductions explained. It contains the descriptions of the supported pay types and deductions in QuickBooks Online Payroll as well as how each impacts federal taxes and forms.

 

I'm only a post away if I can be of additional assistance or if you need more help with setting up a retirement plan in QuickBooks Online. Wishing you a wonderful rest of the week. Merry Christmas!

View solution in original post

EPSEA
Level 1

Tracking Cash Balance Plan Contributions in QB Online / Online Payroll

Marjorie, thank you for your insights.  Could we hire you and your firm for a QB Online consultation on this and a few other things on our list.  We would highly value your expertise.

jamespaul
QuickBooks Team

Tracking Cash Balance Plan Contributions in QB Online / Online Payroll

Hello, EPSEA.

 

Just to clarify, Marjorie is part of our QuickBooks Team so she's not actually under an accounting firm. That said, I'll be happy to route you to a page on where you can hire or consult a firm. 

 

You can look for ProAdvisors within your city or zip code from this page: https://quickbooks.intuit.com/find-an-accountant/.

 

If you're interested to know on what ProAdvisors do and how they can help you, please check this article for more details: Find-a-ProAdvisor resources.

 

Also, I'm glad you find her response helpful. Just to add something to the mix, I recommend browsing our QuickBooks Online Payroll's Tax articles. I'm sure you'll find an article that can help you manage your employees' tax liabilities and contributions. 

 

Need help with other tasks in QuickBooks Online? Visit our general help topics page. From there, you can select a topic where you can browse an article. 

 

Drop by in the Community space if you have other concerns or questions. The QuickBooks Team and I will be more than happy to help out again. 

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