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Add retirement deductions and contributions retroactively

It's important to keep retirement deductions or contributions up to date throughout the year so that we can be sure to create accurate W-2s for your employees. If you missed adding these to Gusto or need to update this information before we file your quarterly or annual taxes, follow the steps below to add them retroactively.

Step one: add retirement benefits

First, make sure your retirement benefits are set up properly by following these steps. You'll find retirement options under the Financial Health section. 

  • Choose "Yes—we currently offer this benefit" to set up a third-party retirement benefit, and follow the instructions.
  • Once the benefit has been set up, add the employees you'd like to apply this benefit to.
    • Keep in mind: once you've set up the benefit for your company, you can then individually edit the employee deductions and company contributions by going to each employee's profile and editing the amounts from the Benefits tab.
  • In the "Edit Benefits" section of their profile, enter the year-to-date totals that need to be recorded for each employee. This should be the full amount for the year.  If for any reason you are unable to add in contributions, get in touch with our team by email. 
    • Include the names of the employees in question, the amount of employee deductions, and employer contributions that need to be recorded for year-to-date totals.

Step two: run an off-cycle payroll

Once you have everything set where you like it, you save these deductions and contributions by running an off-cycle payroll with a $0 net deduction. Follow these steps:

  1. Go to Run Payroll
  2. Under "Other payroll options" select Off-Cycle Payroll
  3. In Step 1, add a work period and payment data, then select the employee(s) you need to add the benefit to 
  4. Once selected, click "Enter Payment" next to the employees' names
  5. From the options that show, click "+ Net Earnings" and enter 0 in the box. This will calculate the gross amount needed to pay taxes on the benefit as well as correct reporting to include the imputed pay for the employee.
  6. Continue through steps two, three, and four
  7. If all looks correct after you review your summary on step four, click Submit payroll

Note: your employee will not be paid by running this off-cycle payroll. This will just make sure the imputed pay is recorded, and the taxes will be paid and remitted to the appropriate agencies.

Step three: disable or adjust benefit amounts

Once steps one and two are complete, either disable the benefit entirely by removing it OR, adjust the amounts to reflect the per-payroll deduction amount that you’d like apply to future payrolls. This option will make sure the deductions and contributions are being recorded for your employees' W2s moving forward.

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