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lkirbysh
September 13, 2021
Question

CalSavers and Quickbooks

  • September 13, 2021
  • 2 replies
  • 0 views

I have setup my payroll item for the CalSavers deduction according to the QuickBooks instructions. Even though it seems to be acting as a post-tax deduction (the taxes seem to be calculated correctly) it is showing up with the pre-tax deductions and affecting the adjusted gross income. With this deduction being a % calculated on the gross income there is no option to have it deducted from net income. This will most likely create a problem on the W-2's at the end of the year. Has anyone found a way to deal with this.

2 replies

AlcaeusF
AlcaeusF
September 13, 2021

Hello @lkirbysh,

 

Thank you for reaching out to us here in the Community. I'm here to provide some clarification about the deduction item in QuickBooks Desktop.

 

We coordinate with your state to ensure the setup of the deduction is correct. The way the payroll items affect the forms will depend on the tax tracking.

 

For California: CalSavers, it's recommended to set the tax tracking to None (see screenshot below). This way, the amounts will not report on your tax forms.

 

 

You can also reach out to your state for further verification. They can confirm about calculating the amount on gross pay.

 

For more information, as well as how to edit the payroll item in QuickBooks, I recommend the following article: State retirement savings plan (Savers program).

 

Drop me a comment below if you have any other questions related to running payroll. I'll be happy to help you some more.

    L
    LS101
    August 2, 2022

    Hi AlcaeusF, you said to set the tax tracking to none re: State mandated retirement plans. But where is the screen located that is shown here? I cannot find it in QB online payroll.

    BigRedConsulting
    BigRedConsulting
    September 14, 2021

    @lkirbysh 

    "Pretax" and "[Percentage] Calculated on Gross" are two different things.

     

    As long as the item's tax tracking type is None or Other, and no taxes are selected to be impacted, then it 1) won't impact any taxes, and 2) won't impact your payroll tax reporting, including W-2's.

     

    You make a good point that is shows up in payroll reports like the Payroll Summary Report, and perhaps on pay stubs as well as pre-tax, but payroll reports in QuickBooks aren't designed to mimic payroll tax forms and don't really share the same concepts as payroll tax forms. While the payroll summary report has a subtotal for "Adjusted Gross Pay", for example, that subtotal isn't the same as "Adjusted gross income" on a W-2 or, of course, a 1040.

     

    As long as the item doesn't actually impact any taxes, then it will work as expected.

      V
      victor_sp
      July 28, 2022

      I see that CalSavers gives an option to connect to a payroll provider, such as Quickbooks.  Will this allow me to submit employees' contributions electronically, similar to E-pay for payroll taxes?

       

      To be honest, I am not too comfortable with entering my Quickbooks login/password to access CalSavers, since I am unsure of login security across different systems.

       

      In the end, I assume that connecting CalSavers to QuickBooks would just save me some time in having to log into CalSavers separately and submit the contributions manually.

       

      Am I overthinking this, or is it secure to connect Calsavers to Quickbooks, and does it facilitate contribution submissions?

       

       

       

       


       

       

       

      S
      ShiellaGraceA
      July 28, 2022

      Thanks for joining us here today, @victor_sp.

       

      I have some information about CalSavers. In QuickBooks, you have the option to either use the retirement plans integrated with QuickBooks or use CalSavers. This app does integrate with QuickBooks Online Payroll. Thus, you can file and pay your retirement contribution through it.

       

      When you access the app, it's normal that you login to access the site. For more information about retirement plans, check out this guide: Set up state-mandated retirement plans in QuickBooks Payroll.

       

      Additionally, here's our payroll help page in case you need help with other payroll-related tasks. It contains topics with articles and some videos to guide you along.

       

      Reach out to us again if you need help with anything else, or with retirement plans. I'll be right here for you. Take care and have great day ahead.

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