How to record 401k Fees and 401k ACH Contributions

BBATL · ‎February 07, 2024

What account and tax form selection should I use for Quarterly 401k Administration Fees? Assume that's an expense I can put under "Payroll" as 401k fees? Also, what account would the ACH to fund the 401k fall under? Example, deducted separately from my payroll, the money is directly deducted from my bank account by the 401k company the funds for my employees 401k contributions. Twice a month deductions run through payroll, but my payroll company does not deduct the money as part of their service, the 401k company does directly from my bank account.

ZackE · ‎February 07, 2024

Thanks for becoming part of the Community, BBATL.

To properly identify which accounts you should be using for 401k fees and ACH contributions, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

Go to our Find a ProAdvisor page.
Use the City or ZIP search field to specify a location.
Select Find a ProAdvisor.
Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

Once you've found an accountant, they can be contacted through their Send a message form:

Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
Select Send message.

I've also included a detailed resource about working with 401ks which may come in handy moving forward: How much does a 401k cost an employer?

If there's any additional questions, I'm just a post away. Have a great Wednesday!

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