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December 25, 2023
Question

I'm an S corp employee owner (no other employees) trying to enter employee + employer 401k contributions made by my corp through the year. How to do this in QB payroll?

  • December 25, 2023
  • 1 reply
  • 0 views
This is of course at year end when I have no additional regular payrolls to run; just trying to get the W-2 correct with my 401k/medical premium contributions. Thanks in advance!

1 reply

December 25, 2023

I see you are trying to enter employee plus employer 401k contributions made by your corp throughout the year in QuickBooks Online Payroll. Worry not. I've got you covered. I have here guidelines to help you record these contributions in your QBO account.

 

You can set up a payroll item for 401K to record both employee and company contributions within QuickBooks Online (QBO) Payroll. After processing a payroll, this will automatically log the deductions in your bank account. Here's the process:

 

  1. Go to Payroll, then select Employees.
  2. Click the name of your employee and select the Pay pencil icon.
  3. Go to Does employee have any deductions? section and click + Add/edit deductions.
  4. Select + Add/edit deductions/contribution.
  5. From the Deduction/contribution ▼ drop-down list, choose + Add deduction/contribution.
  6. Select a Deduction/contribution type and Type. 
  7. Add a Description. This is the deduction or plan name which appears on paychecks.
  8. Choose whether you want the deduction to be calculated as a Flat amount or Percentage of gross pay. Then enter the amount or percentage. 
  9. Click Save, then Done.

 

For additional details, including instructions on allocating retirement plan deductions and company contributions, refer to this article: Set up or change a retirement plan.

 

With all that, you can enter employee plus employer 401k contributions made by your corp throughout the year in QuickBooks Online Payroll. Drop me a comment below if you have further questions about setting up 401k or other QuickBooks-related concerns. I'll be happy to help you some more. Have a great day ahead!

December 25, 2023

Thanks for the response. Since these contributions were applied upstream to my paying myself via payroll, these contributions were not automatically included in my payroll during 2023. How do I add what I contributed now that we're at year's end, with no additional normal salary/payrolls I need to run? For example, let's say I have $20k employee contributions and $40k employer contributions to account for for the year. I've already added the deduction ($20k/paycheck) and company contribution ($40k/paycheck) through your mentioned method, but have not actually subsequently run the payroll. How does this get translated into my W-2? Thanks in advance!

JessT
December 26, 2023

Hi jpksiu-qbpayroll,

 

I appreciate your detailed response regarding your contribution. However, we'll need help from our QBO Payroll team to do some adjustments to reflect the contributed amount. Please contact them from 6 AM to 6 PM PT, weekdays.

 

  1. Sign in to your QuickBooks Online company.
  2. Go to Help (?).
  3. Select Contact Us.
  4. Enter your concern, then select Let's talk.
  5. Choose a way to connect with us:
    • Start a chat with a support expert.
    • Get a callback from the next available expert.

 

If you have other questions in mind, feel free to go back to this thread. Have a good one!