When setting up a 401k company matching contribution (in my case, safe harbor), the company contribution should truly be a matching contribution up to the capped percentage or amount. Currently, there is nothing to indicate that QuickBooks handles it as a straight contribution at the percentage shown and this causes numerous issues.

Currently, we have employees who either contribute a straight flat dollar amount (that may or may not meet the 4% matching contribution cap) or an percentage less than the capped company match of 4%.

When setting up the contributions we were told to use the capped amount as the amount of the company "matching" contribution. However, when this is done, even if the employee contributes less than the capped percentage for that particular pay period, QB calculates the company matching contribution as 4% and we have now had to make corrections (through the escalation team) to several employees and make manual corrections/adjustments to the employee's 401k plan account.

In the case of the employees who contribute a flat amount, this now requires a review of their earnings on a week-by-week basis as they may or may not exceed the amount they contributed (as an employee) if we leave the company contribution (supposed to be a matching contribution) at the capped amount or even at the flat dollar amount on any given week as the amount would likely be incorrect.

THIS IS CAUSING US HUGE ISSUES WITH COMPLIANCE WITH OUR 401K PLAN!

this is very important for retirement accounts.