Hello @dt126a,
QuickBooks Desktop Payroll doesn't have a built-in feature to automatically include a carrier processing fee as part of the 401(k) on the same payroll liability line. Instead, you can set up a separate payroll item to record the fee as a company liability to ensure it appears correctly on the Pay Liabilities section.
Let's start by creating a liability account to track these fees. Then add a payroll item named "401(k) Admin Fee Payable" for easy identification.
Here's a thorough guidelines in adding the the payroll item:
- Go to the Lists menu and select Payroll Item List.
- In the Payroll Item dropdown, click New.
- Select Custom Setup method and click Next.
- Choose Company Contribution (Employer 401(k) matching contribution, HSA contribution) and click Next.
- Enter 401(k) Admin Fee Payable in the contribution name and click Next.
- Choose to which the liability is paid for, the number that identifies you to agency, the liability account which you have recently created to track this fee, and the expense account.
- Click Next.
- Choose None in the Tax tracking type.
- Follow the onscreen instructions and enter the required details to finish the setup.
When you run payroll, make sure to add this item. Then, the fee posts to the liability account and appears on the Pay Liabilities screen. Please note you must enter the fee amount for each payroll run.
After that, edit the Payee in Pay Liabilities to your 401(k) vendor so you can select and pay it with the carrier contribution. Here's how:
- Click View/Pay button.
- In the Pay to the Order of, select your 401(k) vendor.
- Hit Save & Close.
Let me know if you need additional help managing your tax payments. We're available 24/7 to assist you.
