401K True Up Contribution

I'd be glad to help with your question about recording company contributions, jkmnmom.

Let me share the steps with you on how to set up and enter a 401K contribution in QuickBooks Desktop. Here's how:

1. Go to the Lists, then select Payroll Item List.
2. Press CTRL + N on your keyboard and select Custom Setup.
3. Select Company Contribution, then select Next.
4. Enter a name of the item and click Next.
5. Select a tax tracking type. For now, QuickBooks only has 401(K) Co. Match in this window. I'd recommend reaching out to your accountant if you will be using this type or a different one.
6. Click Next and provide all other required details.

More details about setting up retirement plans are shared here: Retirement Plan Catch Up Contributions .

Once done, you can add this item when creating paychecks or create a liability adjustment to record it in QuickBooks Desktop. Although, I would also recommend reaching out to your accountant and ask for additional advice about this. 

Feel free to take a look at these articles or bookmark them in case you need more help with payroll:

• Create a Payroll Summary Report 
• Run Payroll Liability Balances Report 

You can also reply to me or post more questions if you need anything else. The Community is always here to guide you again.

I have the payroll item for the company contribution already set-up in QuickBooks. My question is how I do a particular entry for a "true up" contribution after year end (we changed our retirement plan to increase the employer contribution). Since this contribution isn't for a particular payroll period (and will be entered after all other payroll liabilities have been paid for the year), I'm not sure how I should enter the contribution so that it is correctly shown in the liability account when I do go to pay it? Also, since it is for calendar year 2021, but won't be paid until 2022, how should it be handled?

Thank you for getting back to us and adding additional information about your concern, @jkmnmom.

Since Community is a public forum I want to make sure that your account information remains secure. I’d suggest reaching out to our Payroll Support Team. This team is the best resource for such inquiries, as they have the necessary tools to pull up your account and help you enter the correct contribution.

Here's how to reach them:

1. Go to the Help icon and select QuickBooks Desktop Help.
2. Click Contact Us.
3. Write your concerns in the description box, then select Continue.
4.  Click Start a message.

Please check out our support hours to ensure that we address your concerns on time. 

In case you need to edit the year-to-date additions or deductions, you can take a look at this article: Correct year-to-date (YTD) additions or deductions on a paycheck when the wrong tracking type was us...

I've included a couple of articles below which detail all of the available reports you can access in your books and how to run them:

• Create a payroll summary report
• Understand reports
• Set up Roth 401(k) and Roth 403(b), and Roth 457(b) plans

You can go back here if you have more questions. I'm right here together with the Community people to help you out. Stay safe, @jkmnmom.