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Need 401k contribution removed from bonus check

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Is there any way to set up a bonus check that takes the 401k contribution out? Our plan requires 401k payments for bonus checks as well, but quickbooks does not allow me to adjust for that.

QuickBooks Online Payroll

M

MirriamMAnswer

Hello again, Kfronsee. Thanks for clarifying things out.

Bonus and 401K are two separate payroll items. Usually, bonuses are money added on top of an employee's wages, while the latter is a deduction. Thus, when creating a bonus check, you'll need to separate it from a regular paycheck. And add the 401k withholding to the regular paycheck.

Check out below links to learn more about the retirement plans and pay types in QuickBooks Online (QBO):

If you have any more questions or concerns, click the Reply button. Have a safe and productive rest of your week.

Jen_D

Hi there, @Kfronsee,

Joining the thread to share some more information about processing a bonus check without 401K deduction.

If you want to remove the 401K amount on the paycheck, there are a few ways to do it. First, you can edit the amount directly on the paycheck or toggle the employee's profile and update its rate.

Option 1: On the paycheck.

On the Run Payroll page, click the pencil icon below Total Pay.
Go to the Employee deductions section.
Change the amount for 401K to zero.

Option 2: On the Employees profile.

Go to the Workers menu, then select Employees.
Pick the employee's name.
Click the pencil icon in the Pay section. Scroll down on the deductions section (section 5).
Look for the 401K deduction and click the pencil icon beside it.
Change the amount under Employee deduction to 0.
Once done press OK.
Lastly hit Done.

Let me know if you have any more questions about this. I'll be right here to guide you with your payroll processing. Have a nice day!

K

KfronseeAuthor

Sorry, to clarify, when I said I wanted the 401k contribution removed, I want the 401k amount to be deducted from the bonus check, as our plan requires 401k contributions made for all employee payments including bonues. When creating a bonus check, there is no option to change the zero contribution amount to include the require amount.

M

MirriamMAnswer

Hello again, Kfronsee. Thanks for clarifying things out.

Bonus and 401K are two separate payroll items. Usually, bonuses are money added on top of an employee's wages, while the latter is a deduction. Thus, when creating a bonus check, you'll need to separate it from a regular paycheck. And add the 401k withholding to the regular paycheck.

Check out below links to learn more about the retirement plans and pay types in QuickBooks Online (QBO):

If you have any more questions or concerns, click the Reply button. Have a safe and productive rest of your week.

I

idezotl

So if I'm understanding this correctly. After we run say a $1,000 bonus for our employees, next pay period I will need to go in and manually add the 3% company match for each employee to the current company match for that week. AND also calculate and add the 3% to 6% employee deferrals to the then current deferrals for each employee and try real hard not to mess it up?

Where can we submit feedback and product suggestions? Why can't we have the option to add in the matching retirement amounts?

I tried to run an 'extra' payroll like I used to on desktop but since we have Quickbooks Time tied in, it was telling me if I don't pay them the hours for the week it will be 'out of sync' (Quickbooks Online and Quickbooks Time) If I select next week then I have to approve the hours etc. And of course I was hoping this will be easy and I'm trying to get this done as employees are leaving for the long weekend!

R

Rasa-LilaM

Thank you for joining this thread, idezotl.

Accurate payroll data is crucial for the smooth operation of any business. It plays a vital role in ensuring that taxes and forms are processed seamlessly.

To ensure I can provide the best resolution, I'd appreciate it if you could provide me with additional details about the issue. Could you please specify which payroll item you are looking to add to the 3% company match? Also, when you mention employee deferrals, are you referring to the bonus or the 401(k)?

Regarding your question on where to submit feedback and product suggestions, you can do this directly from your QuickBooks Online (QBO) account. Simply click on the Gear icon in the upper right-hand corner and select Feedback. This will take you to a page where you can suggest new features or provide feedback on existing ones.

I'll keep an eye out for your response and look forward to working with you again, idezotl. Thank you in advance. Have a great rest of the day.

I

idezotl

Greetings!

As a small business we do a SIMPLE IRA which the employees participate in.

I need to make sure the bonus gets the proper contributions toward the IRA as the bonus is considered compensation.

I should of been able to do this from the edit paycheck menu for each bonus check and just made sure it calculated at the 3% company match and the 3%,4%,5%,6% etc employee deferral right there. But that all was 'locked.'

Therefore my conclusion is to manually calculate it on the next paycheck. (Running an extra payroll wasn't an option as quickbooks time got confused since today is also payday) Take their gross pay next week, add the bonus and then multiply by the percentage, editing the field to this new number. Which should allow the percentages to reconcile with total compensation when compared to W-2's for 2023 tax season.

To make things worse, we normally do direct deposit but the bonuses were to be a paper check. It's been quite the chore today as all this is new for the first time as we converted over to QBO this year.

Thanks for any clarification you can provide.

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