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D
Dougc83
October 22, 2025
Question

COMPANY PORTION OF 401 BEING ADDED TO EMPLOYYES WAGES

  • October 22, 2025
  • 2 replies
  • 29 views

I AM IN ILLINOIS. MY EMPLOYEES 401 COMPANY CONTRIBUTION IS BEING ADDED TO THER I.D.E.S  FORM BUT NOT TO THE E PAYMENT SO THERE IS A DIFFERENCE IN THE EPAYMENT AND THE FORM SHOWING THEIR TOTAL WAGES.

2 replies

C
ClaireSamanthaSQuickBooks Team
QuickBooks Team
October 22, 2025

Thank you for reaching out, Dougc83.

 

The 401(k) contribution appears on the IDES form because this form is intended to show all wages and benefits under "Total Wages." This includes employer contributions to retirement plans, like the 401(k). However, when calculating the e-payment for Illinois Unemployment Insurance (UI), only the taxable portion of an employee's wages is considered.

 

Since the company's 401(k) contribution is classified as a non-taxable benefit, as it is a retirement plan contribution for the employee, it is excluded from the taxable wage base. This is why it does not show up in the e-payment calculation. Essentially, what you are seeing is the difference between the total wages on the form and the taxable wages used for the payment, which aligns with Illinois UI tax regulations.

 

If you have any further concerns or require clarification, please feel free to leave a reply below. Our Community forum is here to help. 

C
conroy1
October 23, 2025

My IDES FORM IS SHOWING THE 401 COMPANY CONTRIBUTION AND THAT I OWE $14.97 MORE THAN MY EPAYMENT TO IDES. THAT DOES NOT MAKE SENSE.

THANKS

I
IrishAQuickBooks Team
QuickBooks Team
October 23, 2025

Hello, Conroy.
 

In QuickBooks Desktop Payroll, if the 401(k) company contribution is incorrectly set up, it can be added to the employee's total wages on the IDES Form UI-3/40, even though it should not be.
 

The IDES form should only include taxable wages, and employer contributions to retirement plans like 401(k) are not taxable wages under Illinois UI law.
 

The possible reasons why there is a Discrepancy Between the IDES Form and the E-Payment are:
 

  • The IDES form is pulling incorrect wage totals because it includes the 401(k) company contribution.
  • The e-payment, however, is correctly excluding that amount, leading to a difference (e.g., $14.97 in your case).

 

This issue can stem from the tax tracking type used when setting up the 401(k) company contribution item in QuickBooks.

 

To fix this, you can check the Payroll item setup:
 

  1. Go to Lists, then Payroll Item List.
  2. Find the 401(k) Company Contribution item.
  3. Double-click to edit it.
  4. Make sure the Tax Tracking type is set to None or a type that does not include it in UI taxable wages.

 

Once done, run a Payroll Checkup to identify missing info and any potential errors, then verify that each employee's 401(k) company contribution is correctly assigned and not affecting taxable wages.
 

After fixing the payroll item, regenerate the IDES Form UI-3/40. Confirm that the 401(k) company contribution is no extended included in the employee wage totals.
 

If, after checking all of the above and the discrepancy remains, it may be a glitch or misclassification in your payroll setup. In that case, I recommend contacting our Payroll Support Team. They can securely access your file and help you to check this issue further.
 

Please don’t hesitate to reach out if you have any additional queries. We are available 24/7 to provide further assistance.

D
Dougc83Author
October 24, 2025

Yes I had a check mark in setup

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