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December 31, 2023
Question

how to add solo 401k employee and employer contribution on payroll?

  • December 31, 2023
  • 1 reply
  • 0 views

Good Morning -

I'm self-employed and using QuickBooks online.

For my last payroll of the year,  I'd like to add solo 401k employee and employer contribution and I don't see on the categories

Appreciate any assistance on this.

I presume this needs to be done before end of the year?

Thank you.

1 reply

JaeAnnC
December 31, 2023

You've come to the right place for assistance, @pat107. I'll help you record employee and employer contributions to a solo 401(k) in QuickBooks Online (QBO).

 

To add the contribution to each of your employees, you need to run a one-time paycheck. This way, the 401(k) item will affect the employee's W-2 and payroll reports. Please note that the deadline for filing W-2 electronically in QBO is January 30. However, it's best to finish this task before year-end to avoid complications before tax filing.

 

Here's how to set up 401(k) contribution to each of your employees:

 

  1. Click Payroll from the left menu, then select Employees.
  2. Select each employee on the list.
  3. Click Start or Edit in the Deductions & Contributions section.
  4. Click + Add deduction/contribution.
  5. Select Retirement Plans for the Deduction/contribution type and 401(k) for the Type.
  6. Enter other necessary details, including the Employee deduction and Company contribution.
  7. Click Save.
  8. Repeat steps 2 to 7 for the rest of your employees.

 

Once done, create a one-time paycheck for your employees. 

 

Additionally, run payroll reports in QBO to have the necessary details about your employees' deductions and contributions, which will streamline your tax filing.

 

Please don't hesitate to reach out to us anytime whenever you need additional guidance setting up 401(k) contributions in QBO. I'll be happy to assist you further. Take care, and have a prosperous new year!

pat107Author
January 1, 2024

Thank you.  since the deduction for solo 401k 23,500 is more than the salary, the system is not allowing me submit the payroll. How can I bypass this step?