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Set up a 401(k) loan repayment item in QuickBooks Payroll
by Intuit•21• Updated 3 months ago
Learn how to create a 401(k) loan repayment payroll item and add it to the employee profile in QuickBooks Desktop and QuickBooks Online.
Note: Not sure which payroll service you have? Here's how to find your payroll service. |
Set up a 401(k) loan repayment
- Go to Payroll, then Employees.
- Select your employee.
- From Deductions & contributions, select Start or Edit.
- Select + Add deduction/Contribution.
- From the dropdown menu, add the following:
- Deduction/contribution type: Other taxable deductions
- Type: Loan Repayment
- Description: Add a deduction name, such as 401(k) Loan Repayment.
- Select how you want the repayment to be calculated. Then enter the amount or percent per paycheck.
- When finished, select Save then Done.
Step 1: Create a deduction item for a 401(k) loan repayment
- Go to Lists, then Payroll Item List.
- Select Payroll Item and select New.
- Select Custom Setup and select Next.
- Select Deduction and select Next.
- Enter a name for the item (like 401(k) Loan Repayment) and select Next.
- Select the name of your 401(k) provider (or add it), and enter the account number. Then select Next.
- In the Tax Tracking Type window, select None. Select Next twice.
- Under Calculate based on quantity, select Neither and select Next.
- Select Net pay in Gross Vs Net and select Next.
- Leave Default Rate and Limit fields blank. You can add the rate and limit when you add the item to the employee profile.
- Select Finish.
Step 2: Add the repayment payroll item to the employee profile
- Go to Employees, and then select Employee Center.
- Select your employee.
- Select Payroll Info, then add the 401(k) loan repayment item in the Additions, Deductions, and Company Contributions section.
- Enter the repayment amount per period and the limit.
- Select OK, when you're done.
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