401k is not calculating on fringe benefits even though it is on taxes.

Thanks for the details, @jchimer. 

It's great to hear that you've already reviewed your payroll item settings in QuickBooks. Since everything appears set up correctly, let’s ensure that the order in which the payroll items are entered for your employee is accurate for the 401k calculation.

QuickBooks processes payroll calculations based on the order of payroll items in an employee's profile. Thus, we need to enter the fringe benefit payroll item before the 401k item as this can affect how the deduction is calculated from the gross income. Here’s how you can enter these items:

1. Go to the Employees menu.
2. From the Employee Center, click the name of the employee.
3. From the Edit Employee window, click Payroll Info.
4. Add the fringe benefit first then the 401k.
5. Click OK once done.

Once you have entered these items properly, please run a test payroll to see if the 401k is now calculating correctly based on the total gross that includes fringe benefits. We can do that by reviewing the employee's paycheck detail. See the screenshot below for your visual guide.

Moreover, you can generate payroll reports to keep track of your employee information, wages, deductions, taxes, and many more.

We're still ready to back you up if you have more questions or concerns about managing payroll and taxes in QuickBooks. You can click the reply button below and we'll provide the necessary help.