How do I change the annual maximum deduction for my 401k? It is set at $23k and I am eligible to contribute $30.5k (Over 50)?

You can set up a 401(k) Catch-up payroll item to increase the annual maximum deduction of your over 50-year-old employees in QuickBooks Online Payroll (QBOP), Randy. Allow me to walk you through the process.

If you have an existing 401(k) contribution setup, you'll need to delete it first since you're unable to select regular and catch-up deductions of the same type. Then, create a 401(k) catch-up.

Here's how to delete:

1. Go to Payroll and click Employees.
2. Select the employee's name.
3. Click Edit in the Deductions and Contributions section.
4. Select the Trash Bin icon in your existing 401K Contribution.
5. Click Delete to confirm.

Once done, follow these steps to create a 401(k) Catch-up:

1. On the same Edit Deductions and Contributions page, click + Add deduction/contribution.
2. In the Deduction/contribution dropdown, select + Add deduction/contribution.
3. Choose Retirement Plans in the Deduction/contribution type field.
4. For the Type, select 401(k) Catch-up.
5. You'll see the Annual Maximum reach to $30,500.00. Fill in other necessary fields as you see fit.
6. Select Save.
   

Additionally, you can ensure the retirement amounts are showing in your employees' paychecks once you run payroll in the program.

We always got your back if you need further assistance with managing employee deductions in QBOP. Stay safe and have a wonderful rest of the day.