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A
aritchart88
March 12, 2025
Question

Per our 401K plan, fringe benefits such as S-Corp Owners Health Insurance and Personal Use of Company Car should be included when calculating deferral. Possible in QBs?

  • March 12, 2025
  • 1 reply
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S-Corp Owners Health Insurance and Personal Use of Company Car are included in Other Pay and Employee 401K Deductions can only be calculated as: percent of gross pay; flat amount; or per hour worked. Is there any way to make the deferral look at both the Gross pay and Other pay combined? S-Corp Owners Health Insurance is included on every paycheck and the only logical way I can think of doing it is have one 401K plan look at the percent of gross pay and another which is a flat amount equal to the percent of the S-Corp Owners Health Insurance each paycheck. Any other ideas/native functions to accomplish this?

    1 reply

    R
    RhoiceW
    March 12, 2025

    Hi there, Aritchart.


    Thank you for reaching out with your question. I understand that you need to include fringe benefits, such as S-Corp Owners Health Insurance and Personal Use of a Company Car, in the calculation of 401K deferrals in QuickBooks Online (QBO).

     

    Currently, QBO’s standard payroll features allow 401K deductions to be calculated as a percentage of gross pay, a flat amount, or per hour worked. Unfortunately, there is no direct option to combine Gross Pay and Other Pay (which includes fringe benefits) within the native 401K deferral calculation.

     

    1. To add a deduction to your payroll, please refer to these steps:
    2. On the left panel of your QBO account, click Payroll.
    3. Select Employees, and choose an employee you want to add a deduction.
    4. Go to the Deductions/Contributions section, then click Edit.
    5. Click Add deduction/contribution.
    6. Click the dropdown button under the Deduction/contribution type. Then, click Retirement plans.
    7. Select After-tax Roth 401 (k).
    8. Enter the necessary details.
    9. Once done, click Save.

     

    Also, I'd recommend reaching out to your accountant or any tax advisor to ensure an accurate selection of specific payroll tax mapping.

     

    Furthermore, to effectively manage your payroll items in QBO Payroll, please check out this detailed guide for step-by-step instructions.

     

    Propel your financial practices forward with the help of our QuickBooks Payroll team.  Renowned for their expertise in optimizing financial operations, they deliver custom advice suited to your specific business challenges. Connect with a single click and steer towards a brighter financial outcome.

     

    Additionally, to help you better manage and understand your payroll data, you can find detailed instructions on running payroll reports in QBO by visiting this helpful article.

     

    By following these steps, you can manually ensure that both your gross pay and fringe benefits are included in your 401K deferral calculations. If you have any further questions or need additional assistance, please don’t hesitate to reach out. We're here to help!

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