I have a question about best double-entry accounting practices. Background: I use a 3rd party Payroll (Gusto) that reports directly to QBO. When running payroll, Gusto creates a QBO Journal Entry in which my 401k benefit is reported as a CREDIT to a Liability Account (401k Liability) matched by a DEBIT to an Expense Account (Employee Salary, Benefits, and Tax Expenses). Later, I must manually transfer funds from the Business Checking account to the 401k management company. This creates a QBO transaction for me to categorize. To properly categorize that transaction I, then, must manually create a new journal entry, whereby I DEBIT the 401k Liability Account. My question is: should I CREDIT the Employee Expense Account or the Business Checking Account?
