QB2006 - SEP item on pay stubs

We upgraded from QB2003 to QB2006. We use the QuickBooks basic payroll service subscription and everything is set for automatic updates.

In the QB2003 version, the amount of money the company paid into each employee's SEP Plan did not appear anywhere on the pay stub (either because it couldn't be done or because we didn't know how to make it appear).

In QB2006, the amount that the company pays into each employee's SEP Plan does appear on the employee's pay stub. But it shows up under the heading "Taxable Company Items" and then shows the current amount and the year-to-date amount.

Isn't the "Taxable Company Items" heading a mistake because the SEP Plan contributions are not taxable to the company and they are not taxable income to the employee? Although I don't think it makes any difference, we are a tax exempt nonprofit corporation (with 5 employees).

Assuming the "Taxable Company Items" heading is incorrect, is there a way for us to correct that on the pay stubs? We think we entered everything correctly when setting up the SEP Plan in the QuickBooks payroll program, but maybe there's something somewhere that we did wrong.

Thanks.

Reply to
vero215
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Items listed under Taxable Company Items are items the employee is paying taxes on. It is set up wrong.

Reply to
Allan Martin

Thanks. We'll see if we can figure out what we did wrong in the setup process and I'll post back here when I know more.

Reply to
vero215

Just to follow up, we think we have the SEP Plan setup resolved but we're not sure what caused the problem in the first place or exactly how we fixed it.

We didn't make any changes regarding the SEP Plan when we upgraded from QB2003 to QB2006. We just did the upgrade and opened the QB2003 file we had been using (after making backups, etc). Even though our SEP Plan showed up as being under "Company Taxable Items" in the QB2006 pay stubs, we checked and the company's SEP contributions were not included in any State (New Jersey) or Federal income tax computations for the amount of tax the program withheld. All of the setup settings for the SEP Plan appeared to be correct, but somehow the SEP part seemed to be connected in some way to the Unemployment Compensation withholdings (we don't know why or how). But then we tried checking "default" in the SEP Plan setup and now it no longer appears on the pay stubs as a Company Taxable Item. As of June 30 we'll reconcile the amount of Unemployment Compensation withholdings with the correct amount that should have been withheld and see if that's where an error in withholdings occurred.

Thanks again.

Reply to
vero215

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