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Established Community Backer ***

Re: Solo 401K - post to QB Online

The Tax entity type covers this.

Sole Proprietorship or LLC not electing to be treated as a Corporation = No Payroll Permitted for the "owners/members/partners." They take Draws from Equity.

 

LLC filing to be treated as a Corporation, an S Corp or a C Corp = everyone is an employee; there are no Owners. Everyone is paid through payroll.

 

This would be wrong for the Timing: "The banking gets downloaded into QB and I usually take the net checks and split them Salary and Wages and payroll liabilities.  Then the taxes come through and split that to Liabilities and tax expense"

 

Payroll math for the one pay date:

Gross Wages + employer share of taxes = Expense

 

Then, Employee share + Employer share are held in Liability.

 

The Banking date for paying liability is Never the expense.

 

"I have not set up anything for showing the 401K contributions"

 

That is another missing piece of Gross Wages and should have been part of the Gross for each paydate that had withholding, the same as a tax event.

 

And if there was not supposed to be payroll, you have time to reverse and amend and correct all of this. Then, the 401(k) funds are Draw.