Why does Tax Planner count Employer Contributions as Adjustments to Income??

dennis.f.warren

Tax Planner appears to be counting the Employer match of my 401(k) as adjustments to my taxable income. For example, if my bi-weekly 401(k) contribution is $500 and the employer match is $250, Tax Planner is counting both. This would reduce my Taxable income by $6,500 per year which in turn Tax Planner incorrectly calculates my estimated Taxes.

Sherlock

First, verify that the 401(k) account is not set to associate a tax line item with inbound transfers: open the account, press Ctrl + Shift + E, select Tax Schedule.

Next, examine a paycheck transaction as a split:  select a paycheck transaction and press Ctrl + Shift + S.  The employer match should appear as two balancing entries: a transfer to the 401K account and a _401EmployerContrib entry.  Verify the transfer does not have an associated tax line entry: select Edit > Tax line assignments.

Sherlock

First, verify that the 401(k) account is not set to associate a tax line item with inbound transfers: open the account, press Ctrl + Shift + E, select Tax Schedule.

Next, examine a paycheck transaction as a split:  select a paycheck transaction and press Ctrl + Shift + S.  The employer match should appear as two balancing entries: a transfer to the 401K account and a _401EmployerContrib entry.  Verify the transfer does not have an associated tax line entry: select Edit > Tax line assignments.