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Shannon_Kania
April 1, 2024
Question

401k deductions not coming out of commission payments and it should. How do we change that?

  • April 1, 2024
  • 1 reply
  • 0 views
401k is being calculated and deducted and regular wages.  I need to know what settings to update to have it taken out of commission payments as well.

1 reply

I
I used to have an invoices sho
April 1, 2024

Hello there, Shannon!

 

Ideally, to set up 401(k) deductions to be taken out of commission payments in QuickBooks Online, you'll need to make some adjustments to your payroll settings. Just follow the simple steps below and you'll be all set:

 

  1. Log in to your QuickBooks Online account. Navigate to the Gear icon in the top right corner and click on Account and Settings.
  2. From the dropdown menu, select Payroll Settings. In the left-hand menu, click on Deductions & Contributions.
  3. Look for the 401(k) deduction item and click on the pencil icon to edit it.
  4. In the Liability account field, make sure the correct liability account is selected.
  5. Check the box that says Track expenses and itemize deductions by customer to enable 401(k) deductions for commission payments.
  6. Click OK to save your changes.
  7. Return to the main Payroll Settings page and click on Pay Schedules in the left-hand menu.
  8. Locate the pay schedule that includes commission payments and click on the pencil icon to edit it.
  9. In the Additional deductions section, ensure the 401(k) deduction item is selected.
  10. Click OK to save your changes.

 

By adjusting these settings, QuickBooks Online will include 401(k) deductions in commission payments.

 

Moreover, to know more processes about retirement plan deductions or company contributions in QuickBooks Online Payroll for proper tracking and taxation, refer to this article: Set up a retirement plan.

 

For additional insights and information in running reports to ensure data accuracy within the program, check out these articles:

 

 

Please do hit me back for more questions about payroll-related concerns in QuickBooks Online. I'm sure to help anytime. Have a great day!

S
Shannon_KaniaAuthor
April 1, 2024

Thank you for the suggestions. I don't see the options under the gear icon you've referenced. What I have is:

Gear Icon - Drop down includes Account and Settings, however there is no payroll settings in the left menu.  Under the initial gear icon, there is payroll settings.  However when I click on payroll settings, there isn't an option for Deductions & Contributions.  

We are using Online Quickbooks Advanced.

Any other suggestions?

 

C
CamelleT
April 1, 2024

I'd be glad to guide you in finding the deductions & contributions portion on your Payroll, Shannon.

 

To locate the deductions & contributions section, please refer to the steps below:

 

  1. Go to the Payroll tab on the left panel and choose Employees.
  2. Select the employee. Once you're in the employee profile, scroll down under Pay types.
  3. You can now find the Deductions & contributions section. Click Edit. After doing so, you'll be in the Deductions & contributions window.
  4. Locate your 401k deduction, then select the pencil icon beside it to make changes.
  5. Hit Save.

 

 

 

 

 

 

Here's a helpful resource to help you run, print, and customize payroll reports: Run payroll reports.

 

Drop a reply below if you require further assistance managing your tax deductions/contributions in QuickBooks. I'm always here to help. Have a nice day!

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