Employees and payroll

I'll be happy to answer your question, kentsimms.

In QuickBooks Online, to adjust the annual maximum employee deduction for a Solo 401(k), you can establish a new contribution known as the 401(k) Catch-up. It's important not to modify or remove the existing 401(k) setup, as it serves as the foundation for calculating the catch-up. Additionally, the catch-up contribution will be computed once you've reached the 401(k) limit.

To setup the 401(k) catch-up, here's what you'll need to do:

1. Go to the Payroll menu and choose the Employees tab.
2. Locate and select the employee.
3. Go to the Deductions and contributions section and click on Edit.
4. Click on + Add deduction/contribution link.
5. Select Retirement Plans in the Deduction/contribution type▼dropdown.
6. For Type, select 401(k) Catch-up.
7. If you need to track a company-only contribution with no employee match, choose Company-only plan.
8. Set the other necessary information, then click Save when done.

That's it, kentsimms! By following these steps, you can adjust the annual maximum employee deduction for a Solo 401(k) in QuickBooks.

If you wish to generate payroll reports in QBO to access useful information about your business and employees, you can refer to this article for detailed steps: Run payroll reports.

If you have any other questions about setting up the 401k catch-up plan in QuickBooks Online, let us know in the comments below. I'll be happy to help you further, kentsimms.