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February 5, 2024
Question

How do I set up an non taxed contribution?

  • February 5, 2024
  • 1 reply
  • 0 views
where in auickbooks on line to i set up a non taxed contribution?

1 reply

AlverMarkT
February 5, 2024

Welcome to the QuickBooks Community, Jean. 

 

I can help you set up a non-taxed contribution in your QuickBooks Online (QBO) Payroll. 

 

You'll want to create a company contribution item to set up a non-taxed contribution. You can follow these steps: 

 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Deductions & contributions, select Start or Edit.
  4. Select + Add Deduction/contribution.
  5. Select the following:
    a. Deduction/contribution type: Select the contribution type.
    b. Type: Select the specific contribution item.
    c. Description: enter the name of the contribution or plan provider.
  6. In the Company contribution section, select how the contribution is calculated. Then enter the amount or percent per paycheck.
  7. If you want to specify an annual maximum amount for company contributions, enter the amount in the Annual Max field.
  8. Select Save.

 

Just a heads up, while company contributions are usually exempt from taxes, they can still be reported on some payroll tax forms. Therefore, I encourage consulting your plan provider and tax professional to learn more about your contribution. 

 

If you need to run a company contribution report, check out this article about the list of available payroll reports in QBO: Run payroll reports.

 

We'll be here in the Community if you further need assistance creating a non-taxed contribution in QBO Payroll. We're committed to offering ongoing support. Have a great day!