[US] Payroll Benefits and Deductions

System

[US] Payroll Benefits and Deductions

In Wave, you can enter deductions that will reduce employees' taxable earnings and will be reflected on the Form W-2.
To enter a deduction to an employee's wages, go to the Payroll menu on the left...

Read the full story here

bookkeepingsf

Once a Payroll is run with 401k contributions, how does the money actually get to the employee's 401k account? Is the money not deducted from the business account?

Barsin

Hey there @bookkeepingsf

The modification in Wave will deduct the desired amount from the employee's wages. The you, the employers, are responsible for submitting the employees contributions to their 401k account.

The amounts are deducted from the employees gross wages pre-tax, so you, the employee 'keep' the funds to submit to the EE's 401k account instead of the funds being issued to employee as wages.

Hope this makes sense, but don't hesitate to reach out to our payroll team for more information if you want of course! They will happily chat with you or you can file a ticket using our help button in the bottom of your account.

cekentinc

I want to deduct (and contribute, from company!) a percentage of income for a retirement plan. All I see are options for fixed-dollar amounts. Otherwise, I’ll have to manually calculate the dollar amount each pay period. Please help!

JulianP

Hey @cekentinc !

I'm afraid that a percentage value is not supported in Wave at this time. If you'd like to add a deduction, it will have to be entered as a fixed dollar amount.

cekentinc

I’d respectfully suggest this be added. Many benefits, especially retirement-related, are based on a percentage earned. For instance, we wouldn’t give flexible hourly workers the same flat-case amount as a typical 40 hr/wk employee…or even OT (more contributed). I feel many colleagues are in the same place here.