View Full Version : After-tax contributions to Pension Plan (Roth)
01-22-2002, 04:06 PM
Have QB 2000, want to somehow set up so I can make contributions to Roth accounts for 2 pastors. One pastor I don't withhold taxes, so I might be able to figure this out, but how would you withhold the appropriate taxes, but then pay the remaining amount to a third party (Roth account)? Need all this to jive with payroll amounts as amounts paid for Roth must be included in annual wages and have all taxes withheld. (For example we might allocate $500, but once taxes are withheld, the amount would be less.) Church wants to pay third party directly so they know the money is being used for some-sort of retirement account. Both pastors picked Roths instead of a 403(b). Help! I know I'm not explaining this very well, but if you can understand please help.
You set it up the same as any other After Tax deduction on the net pay, not the gross. Tax tracking is NONE. On the screen to calculate after all the tax types, don't check anything. It doesn't appear on the W-2 at all. It will appear on the paycheck stubs.
01-25-2002, 03:51 PM
Thanks for your help, I'm amazed and in awe at your extensive knowledge of QB.
Joey or anyone,
(I use QB 2000) With regard to my Roth question, I need to add this amount first to their payroll and thought about doing it as follows, using both 1 and 2 every time I do a contribution:
1. Roth Addition
-- Tax tracking type: Compensation (because we are giving them them money to purchase the Roth.)
-- Taxes: Subject to all taxes
2. Roth Deduction
-- Agency: Left blank
-- Liability Account: Roth IRAs (Is there a way to set up a liability account without it being connected to the payroll liabilities feature? See my comment about problem below)
-- Tax Tracking: None
-- Taxes: None
-- Gross v. Net: Net
-- Annual Limit: 3,000 (Lawful annual limit for Roth)
Is there an easier way? The Roth Addition lets me see the amount of taxes withheld and then I use the net amount for the Roth Deduction. This puts the "net" money my Roth IRA account which I can then send to a 3rd party for only. The problem I have is I have 2 pastors with different accounts at different institutions. The Roth Deductions shows up as a liability on payroll liabilities. How can I write 2 different checks to 2 different institutions and keep the payroll liabilities zeroed out? I can write checks from the general account, but when I run payroll liabilities, the full amount shows up.
If I do it the above way, it allows me to write a paycheck to her for only the Roth contributions (with the paycheck being in the amount of 0). If I set it up as a "fringe benefit" and apply all taxes, she really gets wacked on the tax end.
p.s. I tried to explain to the best of my ability.
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