How do I categorize 401k contributions

Good day, salemcounselingp. Let me share the steps to help you categorize 401k contributions.

Since you label your post here as QuickBooks Self Employed, please know that payroll is unavailable in this subscription. You may want to check the Billing info on your account to verify which QuickBooks product you're using because a 401(k) is part of an employee's payroll information.

Once verified, you can manually track the 401k in QBSE. Additionally, I recommend consulting your accountant for the correct categorization. Here's an article to learn more: Schedule C and expense categories in QuickBooks Solopreneur and QuickBooks Self-Employed.

However, if you're using QuickBooks Online, there's a default account for this payment. You can check it out on the Payroll preferences and select Accounting. From the Accounting Preferences, scroll down to the Other Liability and assets.

On the other hand, you can go to the Payroll menu if you're referring to setting up the 401k. Follow the steps below to proceed:

1. On the Employees page, locate your employee.
2. From Deductions & contributions, click Edit.
3. Select + Add deduction/contribution, then choose Retirement Plans in the Deduction/contribution type▼dropdown.
4. For Type, pick the applicable retirement plan. Otherwise, a Company-only plan if you need to track a company-only contribution with no employee match.
5. Enter the name of the provider or plan in the Description and complete the remaining fields.
6. Hit Save, then Done.

Moreover, check out this reference to learn about employee contribution limits and how to edit or remove payroll items: Set up or change a retirement plan.

Furthermore, save this guide about generating paychecks: Create and run your payroll.

If there's anything else you need or any other questions about 401K transactions, add them below. I'm always ready to help. Take care, and I wish you continued success.