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Set up and manage company contributions

SOLVED•by QuickBooks•63•Updated 1 week ago

Learn how to set up company-paid contributions to an employee’s retirement or health insurance plan in QuickBooks Online Payroll and QuickBooks Desktop Payroll.

If your company pays a share of your employee's retirement, medical, dental, or vision plan, you can record and track it in QuickBooks 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 are reported on some payroll tax forms.

To learn more about your contribution, talk to your plan provider.

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Deductions & contributions, select Start or Edit.
  4. Select + Add Deduction/contribution.
  5. Select the following:
    • Deduction/contribution type: Select the contribution type.
    • Type: Select the specific contribution item.
    • Description: enter the name of the contribution or plan provider.
  6. In the Company contribution section, select how the contribution is calculated. Then enter the amount or percent per paycheck.
  7. If you want to specify an annual maximum amount for company contributions, enter the amount in the Annual Max field.
  8. Select Save.

Step 1: Set up a company contribution item

  1. Go to Lists, then Payroll Item List.
  2. Select 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 name of the agency to which the liability is paid (or add it),  and enter the account number. Select the liability and the expense account where you want to track the item, then select Next. 
  7. In the Tax Tracking Type window, select the specific contribution item. Select Next twice.
  8. Under Calculate based on quantity, select Neither, then Next.
  9. Leave Default rate and limit fields blank. You can add the rate and limit when you add the item to the employee profile.
  10. 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.

Edit or remove a contribution item

If you need to make changes or remove the contribution, here’s how:

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Deductions & contributions, select Start or Edit.
  4. Select Edit ✎ next to the contribution you want to modify or select the Trash bin icon to remove the contribution. 
  5. 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 (if there's any), and the item name, then press Delete on your keyboard.
  5. Select OK.

Track your company-paid contribution 

If you need to run an company contribution report, check out Run payroll reports in QuickBooks Online Payroll and QuickBooks Desktop Payroll.

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