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Set up and manage company contributions

by Intuit•19• Updated 1 week ago

Learn how to record and track company-paid contributions to an employee’s retirement or health insurance plan (medical, dental, or vision) in QuickBooks Online Payroll and QuickBooks Desktop Payroll.

Note: Not sure which payroll service you have? Here's how to find your payroll service.

Set up a company contribution item in QuickBooks

Company contributions are usually exempt from taxes, but they are reported on some payroll tax forms. To learn more about your specific contribution, talk to your plan provider.

  1. Go to All apps A bunch of numbers and letters on a tile wall., then Payroll, then Employees (Take me there).
  2. Select your employee, then Job & pay.
  3. From Deductions and contributions, select Add.
  4. Select + Add deduction/contribution.
    • For Deduction/contribution type, select the contribution type.
    • For Type, select the specific contribution item.
    • For Description, enter the name of the contribution or plan provider.
  5. In the Company contribution section, select how the contribution is calculated. Enter the amount or percent per paycheck.
  6. If you want an annual maximum, enter the amount in the Annual Max field.
  7. Select Save.

Note: Company contribution items show up under the Other pay/Contributions section of pay stubs.

Step 1: Set up a company contribution item

  1. Go to Lists, then Payroll Item List.
  2. Select the Payroll Item ▼ dropdown, then New.
  3. Select Custom Setup, then Next.
  4. Select Company Contribution, then Next.
  5. Enter a name for the item and select Next.
  6. Select the agency name to which the liability is paid.
  7. Enter the account number.
  8. Select the liability and expense accounts to track the item, then select Next.
  9. In the Tax Tracking Type window, select the specific contribution item.
  10. Select Next twice.
  11. Under Calculate based on quantity, select Neither, then Next.
  12. Leave rate and limit fields blank. You can add these to the employee profile later.
  13. Select Finish.

Step 2: Add the item to the employee profile

  1. Go to Employees, and then select Employee Center.
  2. Double-click the employee's name.
  3. Select Payroll Info.
  4. In the section for Additions, Deductions, and Company Contributions, add the contribution item.
  5. Enter the contribution amount per period and the limit.
  6. Select OK.

Note: Items show up under Non-taxable or Taxable Company Items on pay stubs, depending on the setup.

Edit or remove a contribution item

If you need to make changes or remove the contribution, follow these steps:

  1. Go to All apps A bunch of numbers and letters on a tile wall., then Payroll, then Employees (Take me there).
  2. Select your employee, then Job & pay.
  3. From Deductions & contributions, select Edit ✎.
  4. Select Edit ✎ next to the contribution you want to change.
  5. To remove it, select the Trash bin icon.
  6. Select Save, then Done.

Modify the payroll item

  1. Go to Lists, then select Payroll Item List.
  2. Right-click the item and select Edit Payroll Item.
  3. Change the info as needed on each window.
  4. Select Finish.

Remove the payroll item

  1. Select Employees, then Employee Center.
  2. Select your employee.
  3. Select Payroll Info.
  4. In the Additions, Deductions, and Company Contributions section, select the amount and the item name.
  5. Press Delete on your keyboard.
  6. Select OK.

Track your company-paid contribution 

You can monitor your company contribution totals at any time. Create a payroll summary report in your QuickBooks account to view these specific amounts.

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