How do i classify payments to a individual 401k? I am small business LLC that utilizes guaranteed payments and not payroll to pay myself.

tammy107 · ‎November 12, 2023

I cannot find an expense for "retirement" or 401k. Can i just create an expense for this?

Service · ‎November 15, 2023

I'll throw something out and see if it makes sense to you. In many ways, what you do in QBO doesn't matter as much as what your accountant does with the information. So you could set up an account for those payments in a number of ways, and your accountant will just take that total and put it onto your tax form in the correct way. You could just put it under payroll expense if you want.

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Service · ‎November 15, 2023

I'll throw something out and see if it makes sense to you. In many ways, what you do in QBO doesn't matter as much as what your accountant does with the information. So you could set up an account for those payments in a number of ways, and your accountant will just take that total and put it onto your tax form in the correct way. You could just put it under payroll expense if you want.

tammy107 · ‎November 15, 2023

Thank you!! We had recently come to that conclusion, since QB is just a tool to manage our financials and make it easier to complete our taxes. Thank you for sharing that, very helpful perspective.

AlcaeusF · ‎November 21, 2023

Hello Service,

Thank you for sharing your input to help address the issue. We love to see members supporting one another! Have a great day.

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How do i classify payments to a individual 401k? I am small business LLC that utilizes guaranteed payments and not payroll to pay myself.