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Active Member

401K and Profit Sharing setup in QB!!!

The company I work for is starting a 401K with employer match and a profit sharing plan. I need to know how to set up an account in chart of accounts (which type account?) for each and how to record them from oustsourced payroll.

11 Comments
Established Community Backer ***

You don't need more accounts. If you want to track the em...

You don't need more accounts. If you want to track the employer share separately, go ahead and make one expense account for Employee Benefits, if you don't already have one.

Then, in Payroll, you make a new payroll item; choose EZ. Now you follow the steps.

Please see my attachments; I show the 401 and 403 setup.

Active Member

I am using an outsourced payroll company.. not QB. When t...

I am using an outsourced payroll company.. not QB. When they send the report I put it into QB. Is the 401k a payroll liability? The profit share is an expense?
Established Community Backer ***

"I am using an outsourced payroll company" Like this: The...

"I am using an outsourced payroll company"

Like this:

The Employee amount is no different than their share of their taxes.

The Employer amount is no different than your share of taxes. I don't know if you are managing this as liability, expense, some of each, or if your Provider manages this via "tax impound."

And the Employer 401(k) item, if the payroll service isn't including this, you don't need to, either. When you Pay it, it can be Expense. Or, you did accrue it first, so that makes it liability In and liability Out. Example:

Payroll results in you needing to send $3,000 of Employee funds to the 401(k) service + your own share as Expense. That works fine.


Experienced Member

Re: You don't need more accounts. If you want to track the em...

can you share the attachments

Experienced Member

Re: You don't need more accounts. If you want to track the em...

Can you please share the attachments

Established Community Backer ***

Re: You don't need more accounts. If you want to track the em...

You don't seem to be using QB Desktop for Payroll, so the attachments don't apply.

Experienced Member

Re: You don't need more accounts. If you want to track the em...

thanks-  Does the 401(k) employee and employer match need to be coded any specific way?  Im thinking the employer match would just go in as an expense and the employee contribution as a current liability- or do we even need to account for it seeing how the payroll company already is?

Established Community Backer ***

Re: You don't need more accounts. If you want to track the em...

@Heather M1009

 

Your own topic is elsewhere; here:

https://quickbooks.intuit.com/community/Other-questions/401-k-set-up-for-a-company-that-uses-an-outs...

 

You don't post Liability, unless the Employer is responsible for the Banking to pay out funds, later.

 

The employee share is from their Gross; that is already in the Gross. There is no further Expense for it. The employer share is no different than Employer share of taxes.

 

Please see your own topic.

Active Member

Re: You don't need more accounts. If you want to track the em...

what EZ meaning?

Active Member

Re: You don't need more accounts. If you want to track the em...

I have the same question about employee 401k account. what EZ means?

QuickBooks Team

Re: You don't need more accounts. If you want to track the em...

Hi there, @BICIUSA.

 

The EZ set up is found when you create a payroll item. Let me provide some details.

 

When you create a payroll item, you’ll be prompted to choose between EZ set up and Custom set up. The EZ set up, automatically creates the payroll item for you. While the Custom setup lets you manually enter the payroll item information.

 

The one mentioned above is the EZ set up. Here’s how you can create the payroll item:

  1. Click the Lists menu.
  2. Choose Payroll Item List.
  3. Select New.
  4. Choose EZ set up.
  5. Select either Company Contribution or Addition, and select Next.

Please reach out again to us if you have any questions about creating a payroll item. We'll be here to assist you.