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Anonymous
Not applicable

Booking Employer contributions to 401k

I'm sure this question has been raised, but I can't find an answer.  We use Intuit Enhanced payroll with Quickbooks Desktop Pro Plus 2016.  Using payroll, how should Employer contributions to a 401K be entered?  I know how to book Employee contributions - create a 401K deduction. 

More info: When payment to the 401K plan custodian (Nationwide Trust) for profit-sharing (deferred compensation/401(k) plan) was made, the entry recording the check was a debit to profit sharing expense.

Question: using payroll, how to enter employer 401K  contributions, so annual payroll reports show the amount of contributions made.  (I understand that employer contribution amounts do not show on paychecks, but do show on certain payroll reports).   

Related tax question:  After perusing (reading closely) IRS W-2 instructions,  I nowhere reporting the amount of employer contributions to a deferred compensation plan is required.  Have I overlooked this requirement? 

Solved
Best answer December 07, 2017

Best Answers
john-pero
Community Champion

Booking Employer contributions to 401k

Start by going into your payroll item list to see if 401k Company Match is already there. Usually when you set up the item for employee contribution the employer share is also created. On each employee info under Payroll Info wi be a whoe section to the right for Additions Deductions and Company Contributions. You have to have bothe the employee and employer item there and the appropriate % for each  (they can be different for every employee

 

Hope this helps

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6 Comments 6
john-pero
Community Champion

Booking Employer contributions to 401k

Start by going into your payroll item list to see if 401k Company Match is already there. Usually when you set up the item for employee contribution the employer share is also created. On each employee info under Payroll Info wi be a whoe section to the right for Additions Deductions and Company Contributions. You have to have bothe the employee and employer item there and the appropriate % for each  (they can be different for every employee

 

Hope this helps

Anonymous
Not applicable

Booking Employer contributions to 401k

Hey there @Anonymous, 

 

It looks like @john-pero already provided some awesome insight into how 401k deductions and contributions work. If you need to know how to enter this information into QBO, here is a useful link that explains the process step-by-step. Essentially, you can enter and make adjustments to 401k per employee from the Payroll module. This conversation thread might also be insightful if you need to make adjustments. 

 

I hope this helps! And a warm welcome to the QB Community.

Anonymous
Not applicable

Booking Employer contributions to 401k

Hey @Anonymous,

 

Did you try out @john-pero's advice? Were you able to update your employees' 401k contributions?

Bsnye
Level 1

Booking Employer contributions to 401k

So if the Employer Match for the 401K is under company contributions and employee contributions are taking out of the payroll, how do you actually pay the invoice to the 401K company. I have a hard time entering the amount because it already shows up in company contributions. ( I cant reconcile with leaving the amount actually paid to that fund out)

fjg_admin
Level 1

Booking Employer contributions to 401k

I'm curious if you ever found a solution to this. I'm having the same issue. I can get the information from my payroll download OK, but then when the bill is paid to the 401K admin company, it doubles the contribution in my books.

DebSheenD
QuickBooks Team

Booking Employer contributions to 401k

I've got you covered, fjg_admin.
 

I can help you fix the doubled amount of your 401K contribution payment.


Let's check if the items for the employee and employer are correct. If everything works it would show in your books accurately.

 

Paying payroll liabilities and making bill payments can cause a double entry in QuickBooks. To correct this, we can delete the duplicate one.

Here's how:
 

  1. Click on the Employee menu from the top menu bar.
  2. Then, select the Payroll Centre and then click on the Pay Employees tab.
  3. Find and hit the click on the Payroll in the recent payroll field.
  4. Now, you need to select the list of payroll items you required.
  5. Click on the Delete button.
  6. A confirmation message will appear on your screen, click on the Yes button and you are all done with this program.


I've also added this article that'll help you adjust payroll liabilities and to correct if the payroll item is not calculated.
 

Feel free to click the reply button if you have other questions about retirement contributions. I'm always here to help.



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