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February 15, 2023
Question

We are mandated to do company contribution on bonus pay. But I don't know how to do that.

  • February 15, 2023
  • 1 reply
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We have 401K and Roths. On our bonuses we are required to contribute even if the employee doesn't. Help on how to do this

1 reply

JessT
February 15, 2023

It's good to see you in the Community today, jamueller1!

 

We'll create the company-paid retirement plans and the Bunos pay type so we can use them on the paychecks. Just to clarify, is the 401(k) different from the Roth plan? There's an After-tax Roth 401(k) as well.

 

Supported retirement plans in QuickBooks Online payroll:

 

  • 401(k) and 401(k) catch-up
  • Simple 401(k) and Simple 401(k) catch-up
  • After-tax Roth 401(k)
  • After-tax Roth 403(b)

 

Create a company-paid retirement plan:

 

  1. Go to Payroll and choose Employees.
  2. Click the name of the employee.
  3. Go to the Deductions & contributions section and click Edit.
  4. Click +Add deduction/contribution.
  5. In the Deduction/contribution type drop list, select Retirement plans.
  6. Select a Type: 401k, SIMPLE 401k, etc.
  7. Enter the name of then plan that will appear on the paystub.
  8. Select None for Employee deduction.
  9. Choose Flat amount or Percent of gross pay for the Company contribution.
  10. Click Save. Repeat the steps above to add another deduction.

 

 

Create a bunos pay type:

 

  1. Go to Payroll and choose Employees.
  2. Click the name of the employee.
  3. Go to the Pay types section and click Edit.
  4. Click the expand the Common pay types section.
  5. Put a check mark in the Bunos checkbox.
  6. Click Save.

 

When you create a paycheck, you only need to enter the amount in the Bunos field. Then, you can click the on Preview payroll to see the deductions.

 

 

I'm adding this article for your additional reference: Set up a retirement plan.

 

Let me know if you need help as you follow the steps.