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MmmmYah
February 24, 2023
Question

Solo 401(k) - exempt from which taxes?

  • February 24, 2023
  • 1 reply
  • 0 views

Hey guys -  Single person New Jersey LLC taxed as S-corp setup here (filing quarterly 941s, and just one w-2 for myself as employee). Which taxes is the Fidelity solo 401(k) plan exempt from. Can someone please advise on items 1-14 below thanks

 

EMPLOYEE CONTRIBUTIONS :

1. Federal Income Tax (FIT) - Exempt?
2. State Income Tax (SIT) - Exempt?
3. FICA - Not Exempt?
4. Medicare - Not Exempt?
5. Local Taxes - Exempt?
6. Federal Unemployment (FUTA/FUI) - Not Exempt?
7. State Unemployment Tax (SUTA) - Not Exempt?

 

EMPLOYER CONTRIBUTIONS:

8. Federal Income Tax (FIT) - Exempt?
9. State Income Tax (SIT) - Exempt?
10. FICA - Exempt?
11. Medicare - Exempt?
12. Local Taxes - Exempt?
13. Federal Unemployment (FUTA/FUI) - Exempt?
14. State Unemployment Tax (SUTA) - Exempt?

1 reply

R
RCV
February 24, 2023

Thanks for checking in with us, MmmmYah.

 

QuickBooks Desktop supports several different types of retirement plans. Choose which plan you want to offer your employees and review the contribution limits. Here's an article you can refer to for more insights about setting up a retirement plan.

 

See the screenshot below for your reference:

 

 

 

When it comes to which taxes the Fidelity solo 401(k) plan is exempt from, it is best to contact the IRS. You can also contact your tax advisor to find out what tax exemptions you qualify for. If your employee is exempt from both state and federal withholding, you can select None to exempt your employee from any state withholding. On the other hand, select Don't Withhold to make a federal tax exemption.

 

Please see the attached sample snippets for where to click it based on the steps shared above:

 

 

For more details about making a tax exemption in QuickBooks Desktop, check out this great resource: Learn how to set up tax-exempt employees in QuickBooks Desktop Payroll.

 

Know that you can always get back to me here in the Community if you have any other questions. I'll be around to lend a helping hand. Keep safe!

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