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Level 2

How can I avoid employee pension contributions registering twice on the P&L?

My P&L automatically logs Pension Contribution ER each time I run payroll. However, when I then physically pay the same cost to the pension provider, and log it as an expense within Quickbooks, the figure shows up twice on my P&L.

I could avoid logging the payment as an expense (which would remove the double counting on the P&L) but then my bank balance does not reconcile as the bank balance shows net pay figures only and does not automatically log the pension contribution in the same way the P&L does.

Any help and guidance would be much appreciated.
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Best answer October 25, 2019

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QuickBooks Team

How can I avoid employee pension contributions registering twice on the P&L?

Hello,  david112.


When paying this amount to the pension provider, you'll need to use the liability under the Category. This is the payroll liability account where the accumulated pension was tracked. Through this, the payment will deduct the liability (Balance Sheet) account and will not touch your expense account (Profit and Loss).

 

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Stay around if there's anything else you need. 

View solution in original post

2 REPLIES 2
Highlighted
QuickBooks Team

How can I avoid employee pension contributions registering twice on the P&L?

Hello,  david112.


When paying this amount to the pension provider, you'll need to use the liability under the Category. This is the payroll liability account where the accumulated pension was tracked. Through this, the payment will deduct the liability (Balance Sheet) account and will not touch your expense account (Profit and Loss).

 

1.PNG

2.PNG

Stay around if there's anything else you need. 

View solution in original post

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Level 2

How can I avoid employee pension contributions registering twice on the P&L?

Hi MikiD,

 

Thank you very much for the guidance, it worked perfectly and there is now no longer any double counting and my bank balance is still properly reconciled.

 

I appreciate you taking the time to help.

 

Dave