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Tracking Cash Balance Plan Contributions in QB Online / Online Payroll

Forum|Forum|5 years ago
December 24, 2020
2 replies
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I'm trying to track cash balance plan contributions that will be made in January 2021 for the 2020 fiscal year. There isn't a deduction / contribution type for a cash balance plan and QB Online / Online Payroll doesn't let you add new deduction / contribution types. See the attached file for the options that they have.

The way it should work for example is if an employee earns $50,000 per year, they are entitled to a $500 cash balance contribution paid by the company into an investment account on their behalf.

1) Is there a best practice how to do this in QB Online?

2) The contribution is not taxable to the employee, yet it is an expense for the company. If it does end up being setup as a contribution in the Payroll area of QB Online, can it be setup so it doesn't show on their W-2. Cash Balance plans are not taxed until money is withdrawn from the plan.

Thanks,

EP

Best answer by Rose-A

Welcome to the Community, EPSEA.

I appreciate the screenshot you've provided. Let me share some information regarding the supported retirement plans in QuickBooks Online.

Tracking Cash Balance Plan is currently unavailable in QuickBooks Online. Intuit only supports the following retirement plans:

401(k
SIMPLE 401(k)
403(b)
SARSEP
SIMPLE IRA
Roth 401(k)
Roth 403(b)

For now, I'd suggest consulting an accountant to help you choose the closest type on the lists. To know more about what are these plans for, check out this article: Retirement plan deductions/contributions. On the same link, you'll find additional details on how they're reported on the employee's W-2.

Additionally, I recommend visiting this write-ups that contains the descriptions of the supported pay types and deductions in QuickBooks Online Payroll as well as how each impacts federal taxes and forms:

I'm only a post away if I can be of additional assistance or if you need more help with setting up a retirement plan in QuickBooks Online. Wishing you a wonderful rest of the week. Merry Christmas!

Rose-AAnswer

Welcome to the Community, EPSEA.

I appreciate the screenshot you've provided. Let me share some information regarding the supported retirement plans in QuickBooks Online.

Tracking Cash Balance Plan is currently unavailable in QuickBooks Online. Intuit only supports the following retirement plans:

401(k
SIMPLE 401(k)
403(b)
SARSEP
SIMPLE IRA
Roth 401(k)
Roth 403(b)

For now, I'd suggest consulting an accountant to help you choose the closest type on the lists. To know more about what are these plans for, check out this article: Retirement plan deductions/contributions. On the same link, you'll find additional details on how they're reported on the employee's W-2.

Additionally, I recommend visiting this write-ups that contains the descriptions of the supported pay types and deductions in QuickBooks Online Payroll as well as how each impacts federal taxes and forms:

I'm only a post away if I can be of additional assistance or if you need more help with setting up a retirement plan in QuickBooks Online. Wishing you a wonderful rest of the week. Merry Christmas!

E

EPSEAAuthor

Marjorie, thank you for your insights. Could we hire you and your firm for a QB Online consultation on this and a few other things on our list. We would highly value your expertise.

J

jamespaul

Hello, EPSEA.

Just to clarify, Marjorie is part of our QuickBooks Team so she's not actually under an accounting firm. That said, I'll be happy to route you to a page on where you can hire or consult a firm.

You can look for ProAdvisors within your city or zip code from this page: https://quickbooks.intuit.com/find-an-accountant/.

If you're interested to know on what ProAdvisors do and how they can help you, please check this article for more details: Find-a-ProAdvisor resources.

Also, I'm glad you find her response helpful. Just to add something to the mix, I recommend browsing our QuickBooks Online Payroll's Tax articles. I'm sure you'll find an article that can help you manage your employees' tax liabilities and contributions.

Need help with other tasks in QuickBooks Online? Visit our general help topics page. From there, you can select a topic where you can browse an article.

Drop by in the Community space if you have other concerns or questions. The QuickBooks Team and I will be more than happy to help out again.

P

pjvanhout

I see this post is from 2020. Has there been any new QBO/QBO payroll functionality added to support managing a Cash Balance Plan?

E

EvethC

I appreciate you for joining this thread, Pjvanhout. Currently, the Cash Balance Plan is still unavailable in QuickBooks Online Payroll. Let me share some updates about the retirement plans we support and offer you an alternative solution.

As of the current update, here are the supported retirement plans in QuickBooks:

401(k) / 401(k) catch-up
Simple 401(k) / Simple 401(k) catch-up
403(b) /403(b) catch-up
SARSEP / SARSEP catch-up
Simple IRA / Simple IRA catch-up
After-tax Roth 401(k)
After-tax Roth 403(b)
Company-only plan

Since the Cash Balance Plan is unavailable, you can proceed with the 401k retirement plan instead. However, I'd still recommend consulting an accountant to help you make the best choice for your retirement planning needs.

If you don't have an accountant, feel free to visit our QuickBooks ProAdvisor site to find a local professional or reach out to our QuickBooks Live Expert Assisted team to ensure that the plan you choose adheres to your specific needs and provides tailored advice.

Furthermore, if you'd like to adjust your employees' payroll deductions and set up company contributions, please refer to these articles:

Please don't hesitate to leave a Reply in the comment section. The Community is always here if you need further assistance or have questions about your retirement plans.

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