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ajm01998
January 19, 2022
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Reclassify retirement contributions to Roth

  • January 19, 2022
  • 1 reply
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We have a payroll item for 403(b) contributions and another payroll item for Roth 403(b) contributions.  Both of them were set up with the proper tax tracking.

 

We correctly used the payroll items for over 100 of our employees, but there are six employees who made contributions to a Roth 403(b) account but on whose paychecks we accidentally used the 403(b) payroll item.  This was done for an entire year of paychecks.

 

Is there anything we can do to "reclassify" the contributions in QuickBooks so that the employee's W2 correctly shows that they made Roth contributions?  I don't really want to go back and change all of those paychecks if I don't have to.

Best answer by Charies_M

Hello there, ajm01998.

 

I appreciate such detailed information about your concern. Let me go ahead and address them for you. 

 

You can create a payroll adjustment to reclassify the contributions to Roth 403(b). Before doing so, run a Payroll Summary report for the quarter you need to adjust.

 

Here's how:

  1. Go to the Reports menu and select Employees & Payroll.
  2. Choose Payroll Summary.
  3. Set the date and click on Refresh.
  4. Remove the Hours and/or Rate columns by clicking the Customize Report button.
  5. Under the Display tab, clear the Hours and/or Rate checkboxes. Then, select OK.
  6. Locate and review the insurance item under the Employer Taxes and Contribution section.

For the detailed steps in creating an adjustment, refer to this article: Adjust payroll liabilities in QuickBooks Desktop.

 

I'd still recommend conferring with your accountant or bookkeeper for further guidance in recording the payroll adjustment.
 

You might also want to visit our help page to browse articles that can guide you with your QuickBooks tasks. To get started head to our QBDT help articles at this link.

 

I'm just a post away if you have any additional questions about doing the liability adjustment or anything about QuickBooks. I'm more than willing to help. Have a great day.

1 reply

C
Charies_MAnswer
January 20, 2022

Hello there, ajm01998.

 

I appreciate such detailed information about your concern. Let me go ahead and address them for you. 

 

You can create a payroll adjustment to reclassify the contributions to Roth 403(b). Before doing so, run a Payroll Summary report for the quarter you need to adjust.

 

Here's how:

  1. Go to the Reports menu and select Employees & Payroll.
  2. Choose Payroll Summary.
  3. Set the date and click on Refresh.
  4. Remove the Hours and/or Rate columns by clicking the Customize Report button.
  5. Under the Display tab, clear the Hours and/or Rate checkboxes. Then, select OK.
  6. Locate and review the insurance item under the Employer Taxes and Contribution section.

For the detailed steps in creating an adjustment, refer to this article: Adjust payroll liabilities in QuickBooks Desktop.

 

I'd still recommend conferring with your accountant or bookkeeper for further guidance in recording the payroll adjustment.
 

You might also want to visit our help page to browse articles that can guide you with your QuickBooks tasks. To get started head to our QBDT help articles at this link.

 

I'm just a post away if you have any additional questions about doing the liability adjustment or anything about QuickBooks. I'm more than willing to help. Have a great day.

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