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QuickBooks Payroll 401k

QuickBooks Payroll 401k

What Retirement Benefits 401(K) In QuickBooks Payroll

QuickBooks Payroll is an amazing software that helps in making payroll and employee benefit-related functions much easier and smoother to handle. There is one such payroll item in QuickBooks Payroll. It is the QuickBooks Payroll 401k plan. It is related to retirement benefits. If the 401(k) is a competent plan then it can be established by the employer.

In this, all eligible employers can make salary deferral or salary reductions in the form of offerings. It is based on a post as well as a pre-tax basis. The offerings or contributions made can be matching or non-elective to the plan. It is on behalf of employees who are eligible and there is a profit sharing plan additionally part of the plan. The accumulated earnings are based on a tax-deferred way.

Setup Institution 401K Intuit QB Payroll

Normally there are two types of 401k plans. They are standardized and non-standardized plans. In case the plan is already standardized, the compensation will be careful wages that are considered after calculating a deferral.

The commission check will depend on how much percentage is allocated to the 401k plan. In the case of a standardized plan, there is no such choice for the 401k plan.

There are distinct and particular features related to the non-standardized plan. In the case of a non-standardized plan, an employer or employee has the choice of not contributing definite types of pay for retirement deferral.

There is a limit on the annual contribution in case of all eligible deferred contributions. Normally employee contributions are exempt from federal income tax withholding.

In a few cases, from state income tax withholding too but that depends on medicare, social security, and other taxes too. Other types of retirement plans are 403(b); 408(k)(6) SEP; Elective 457(b); 501(c)(18)(D); etc.

How To Enter QuickBooks Payroll 401K As Deduction?

There are normally two ways to set up a payroll item for retirement gains. Also, you have to know about QuickBooks Payroll Deductions applicable on salary, Let us explore more about them:

  • There is normally an EZ Setup that has standard settings. This is mostly recommended for all types of users. It can add the company contribution payroll item related to the retirement plans.
  • See the QuickBooks Desktop menus at the top. The user needs to click on lists, then payroll item lists.
  • At the lower left of the Payroll Item List, the user needs to click Payroll Item. After that, the user needs to click on New.
  • The EZ Setup has to be chosen and then click on Next. Instructions on the screen have to be followed.

For example, in the case of some employees, the local income tax may not be reduced by retirement benefits such as 401k. In such circumstances, deselect the local tax item. It is there on the right side of the taxes window of the payroll item set up.

All vendor information in a payroll item should be correct. The preset tax settings should not be adjusted. Also, have you employed QuickBooks Payroll Health Insurance for all employee salaries?

Help For 401 K Employee Benefit Settings Problem

For a complete understanding of QuickBooks Payroll-related functions and features as well as the 401k plans, get in touch with the QuickBooks Payroll support team. For complete details regarding plans relate to retirement benefits, contact us for Live Chat after visiting our website QBPayrollHelp.

Our QBPayrollHelp team’s experts will be glad to help you out regarding QuickBooks Payroll 401k plan and other plans. The technical team will help you out with complete step-by-step resolutions.


How can I customize the 401k reports?

💠 In QuickBooks, click on the Reports menu
💠 From drop-down options, select the Employee and Payroll option
💠 Then again select from further options that are More Payroll
Reports in Excel
💠 Click on the 401(k) Reports
💠 Go to the Report Type and select the type you want to do the options are Payroll or Census
💠 Then click on the Create Report button to create the report you want.

How to add the new payroll items to the employee record?

💠 In QuickBooks Desktop, go to the Employees menu
💠 Then select the option Employee Center
💠 Now in question, you have to double-click on the employee so that the Edit Employee window will open up
💠 In this, click on the tab name Payroll Info
💠 Go to the section Additions, Deductions, and Company Contribution
—–🔵You have to click on the Item Name to open the drop-down list
—–🔵Now click the new items of payroll for the retirement plans
💠 You see a box name Employee is covered by a qualified pension plan
💠 Then click on the OK button.

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