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steve-trylondm-c
April 15, 2024
Question

Can the IRA deduction be computed on the gross pay amount instead of gross pay minus health premiums?

  • April 15, 2024
  • 1 reply
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1 reply

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Aldren18
April 15, 2024

Hi there, @steve-trylondm-c.

 

It is not possible in QuickBooks Online to compute the IRA deduction on the gross pay amount instead of gross pay minus health premiums. QuickBooks Online follows the standard that IRA contributions are pre-tax, and therefore, it cannot manipulate them to be post-tax deductions.

 

For guidance on how to properly establish and modify a retirement plan, please consult this article: Set up or change a retirement plan.

 

If you need help with QuickBooks payroll or any related concern, please don't hesitate to reach out here. I'm always here to assist you. Have a great day!

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steve-trylondm-cAuthor
April 15, 2024

Actually my question was about Quickbooks Online.  I've had no trouble for years getting the correct deduction using QB Desktop, but had to convert recently to QB Online.  The online payroll support team said it cannot be done, which seems problematic.  It now subtracts health insurance contributions from the gross pay and then computes the IRA on the net amount, which is wrong.

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LouiseG12
April 15, 2024

I appreciate you for clarifying your concern, Steve. I recognize the significance of computing the IRA deduction on the gross pay amount. Let me share my thoughts about the IRA deduction.

 

I agree with what my colleague said above. In QuickBooks Online (QBO) the default setup of the IRA deduction automatically subtracts from the health insurance contributions. This means that if you have set up an IRA deduction, the amount will be taken out from your health insurance contributions by default. 

 

Furthermore, you might find this article helpful to manage your payroll reports: Run payroll reports.

 

Know that you can always revisit this page if you need anything else in operating your payroll tasks. I'll be around to lend a helping hand.

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