Hi,
I am doing my first year of Solo 401K, and I have questions about how to report that on W2 through square payroll.
1. I did not find solo 401K as option for square payroll reporting. Does it fall into category of just 401K?
2. Solo 401k has two contributions. 1 = employee contribution/ elective deferral. 2 = employer contribution/ profit sharing. Which of these should go on W2 as benefits?
3. Are these contributions supposed to count in box 1 of W2?
4. Also here is the slightly off topic questions, but in case if anyone knows. I have my solo 401K under Vanguard, but they let me transfer from one bank. Am i supposed to contribute both employee and employer contributions from one account or two separate accounts? I assume they should come from different accounts but just wanted to double check.
Thank you for your time and knowledge in advance.
We aren't able to provide tax advice, and recommend consulting a tax professional if other sellers aren't able to provide some tips here in the Community, @nxy. I also want to point you over to this great resource we have about W-2s - it should get you pointed in the right direction!
According to that page: Box 1: Wages, tips, and other compensation — Total calendar year taxable wages, tips, and other compensation paid to the employee.
Also see: Box 12 D—Elective deferrals to a section 401(k) cash or deferred arrangement. Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement.
Also see: Box 12 AA—Designated Roth contributions under a section 401(k) plan.
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