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R
RoentgenRayMan
June 29, 2024
Question

How to decreased employer contribution to solo 401k after it has already been recorded in payroll

  • June 29, 2024
  • 1 reply
  • 0 views

Hello,

I am an LLC S Corp employing myself and my wife.

I originally calculated my profit sharing amount for the year with contributions of $2,000 per paycheck to reach the 2024 maximum of $69,000 (employee+ profit share)

However, I am now going to start a cash balance plan and the profit sharing is capped at 6%. I have already contributed more than that in my payroll for the year and would like to edit it to the new lower limit.

 

What kind of transaction would I create and where? I use QuickBooks online.

I have tried editing previous paychecks but those fields dont seem able to be adjusted.

 

Thanks

1 reply

R
RoentgenRayManAuthor
June 29, 2024

I am pretty sure I think I figured it out.

 

I went to book of accounts and to the register for the Solo 401k account

I created a one time transaction from the employee and account for the difference, now when I run the Balance Sheet report the correct amount is reflected.

 

Does this do the trick or will this somehow mess with the W2/payroll at the end of the year?

I
IrishNinoJ
June 29, 2024

Hello there, RoentgenRayMan.

 

The entry you made will only affect your balance sheet reports. However, it will not directly impact employee records as well as the tax forms at the end of the quarter/year. Since the 401k has already been added to your payroll records, you can contact our payroll support for payroll corrections.

 

Here's how:

 

  1. Log in to your QBO company.
  2. Select Help (?).
  3. Click Contact Us and choose a way to connect with us:
  • Start a chat with a support expert.
  • Get a callback from the next available expert.

 

In addition, you can refer to this article to learn how to input your employee’s year-to-date paycheck information and company totals: Add pay history to QuickBooks Online Payroll.

 

If you have any further questions about Payroll, feel free to leave a reply. We're here to assist you 24/7.

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