Question

How to set up company 401K match when employee contributes $ insead of %

Forum|Forum|5 years ago
January 18, 2021
4 replies
0 views

I have few employees who make their 401K contribution as a set dollar amount instead of a percentage. The problem I am encountering is that the company match of 4% is coming out higher than the employee contribution. How can I set the company 401K match to 4% or = to the employee contribution, whichever is less?

QuickBooks Desktop Payroll

M

MirriamM

Hi there, Rover101.

I can help you with setting up your 401K match when your employee contributes dollar amount.

Here's how:

Go to the Employees menu at the top.
Select Employee Center
Locate and double click on the employee name.
In the left menu, tap the Payroll Info tab.
In the ADDITIONS, DEDUCTIONS AND COMPANY CONTRIBUTIONS section, select the 401(k) payroll item.
Insert the specific amount for this employee.
Hit OK.

For more details on this process, see this article: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

In case you'd want to have a quick view of your payroll totals, including employee taxes and contributions, run the payroll summary report.

Please let me know if you have additional questions about the 401(K). I'll be here to help. Have a great day.

L

lksmith37Author

That didn't answer the question.

The problem I am encountering is that the company match of 4% is coming out higher than the employee contribution.

How can I set the company 401K match to 4% or = to the employee contribution, whichever is less?

Rubielyn_J

Thanks for getting back in here, @lksmith37.

Let me share some insights about the payroll settings in QuickBooks.

Currently, the ability to get the employee's pay based on the percentage (%) of total compensation is unavailable. The workaround available is to use the Excel formula, and once you get the value, you enter them on the employee paycheck.

Additionally, the percentage would matter how much the wage is. Since you set up an exact amount for the employee, it must also be the same amount to the employer's side.

For future reference, feel free to check out this article: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.)

Let me know if there's anything else I can do for you. I want to make sure you're taken care of. Thanks for reaching out, wishing you and your business the best.

BigRedConsulting

You can't. There isn't a way to limit an item based on the results of another item.

I this case, you need to manage it manually, reviewing the paychecks in the create paychecks workflow before creating them (or fixing them before issuing them if you miss the issue.)