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efernandez22
August 21, 2024
Question

401(k) Match Calculation Inaccurate

  • August 21, 2024
  • 1 reply
  • 0 views

QuickBooks is not calculating the 401(k) match incorrectly.  It will not include S-Corp Medical in the calculation.  This hurts the shareholder as they have to "True-up" the contributions at the end of the year.  I don't know why Q.B. will not allow for the correct contribution allocation.  

 

Has anyone else found this issue to be a problem and what steps have you taken it correct it.

    1 reply

    FishingForAnswers
    FishingForAnswers
    August 21, 2024

    @efernandez22  Have you checked the setup of the 401(k)?

     

    Within the edit window, on the 4th window, Taxes, you'll see a list of payroll items to have the 401(k) apply to.

     

    More likely than not, there will be your problem.

      J
      Jelayca V
      August 21, 2024

      I can see the importance of having your 401(k) calculations handled accurately in QuickBooks Desktop (QBDT), @efernandez22. Let me help you ensure everything is set up correctly to avoid any issues with your contributions.

       

      As noted by @FishingForAnswers, it’s essential to verify that your 401(k) setup in QuickBooks is configured correctly, as this could be the reason why your S-Corp Medical contributions are not included in the calculations.

       

      Proper configuration is essential to ensure that both employee contributions and employer matches are processed accurately. To review your setup, please follow these steps:

       

      1. Navigate to the Employees menu, then Payroll Center.
      2. Click on the Payroll Items button
      3. Choose the ITEM NAME you want to review
      4. Proceed to check your 401(k) setup.

       

      Moreover, you can generate payroll reports in QBDT to get a closer look at your business finances. QuickBooks allows you to customize these reports to match your specific needs.

       

      I'm available to assist with any further questions you have about payroll contributions in QBDT. Feel free to ask if you need any help. Take care.

      BigRedConsulting
      BigRedConsulting
      August 22, 2024

      @Jelayca V  There is no need to post after @FishingForAnswers excellent answer with another that adds no value. It's rude.

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