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April 2, 2024
Question

How do I change the retirement contribution from being calculated after other payroll deductions?

  • April 2, 2024
  • 1 reply
  • 0 views
The contributions are a percentage of the gross pay - how do I change it to do it before the other payroll deductions are taken out?

1 reply

April 2, 2024

A warm welcome to the Community, CB46. Calculating the retirement contribution after other payroll deductions is easy.

 

You can follow these steps to change the tax options on the retirement contribution:

 

  1. On the left pane, select Payroll, then click the Employees tab to locate your employee.
  2. On an employee's profile, scroll down to Deductions & contributions and tap Edit.
  3. Press the pencil icon of the contribution you'd like to change.
  4. Under the Tax options section, choose Post-tax to have premiums deducted after taxes.

 

 

Please know that you need to sign in as an administrator to make the changes. Additionally, I recommend consulting an accountant to ensure accurate accounting records.

 

If you'd like to remove a retirement plan item or learn about its limits, refer to this article: Set up or change a retirement plan.

 

Once done, you can now start generating paychecks for your employees: Create and run your payroll.

 

Let me know if you have additional questions about managing payroll contributions and deductions. I'm always available around the clock to assist you further. Stay safe.

CB46Author
April 4, 2024

The issue is that the retirement should be calculated based on the gross income. The calculation that QB is coming up with, is based off of the gross pay AFTER the health insurance and accidental insurance premium is taken out. 

Candice C
April 4, 2024

Good morning, @CB46

 

Thanks for reaching back out on this thread. 

 

You can either choose to have the premium deduct after or before taxes. My colleague shows a visual that has both options in the post above. 

 

However, if you're still unsure of what steps to do next, I recommend consulting with you accountant to be sure. 

 

If you have any further questions after speaking with your accountant, don't hesitate to come back. We're always here to lend a helping hand. Take care!