Yes, you're right that when setting up payroll items in QuickBooks, it will ask you to map the liability account where payroll-related balances will accumulate, Welovethebooks.
For example, when you establish the Simple IRA company contribution in QuickBooks Online Payroll, you will need to specify the liability account that will hold the funds until they are paid to the plan provider.
When you run payroll, QuickBooks automatically creates the expense entry. This ensures that your Profit & Loss (P&L) report accurately reflects the company's contribution expense in the same period as the payroll processed, aligning with the principles of accrual accounting.
Additionally, we also suggest consulting your accountant to ensure that your mapping is correctly aligned with your payroll preference.
Also, you can check out the article on how to set up a retirement plan deduction or a company contribution in QuickBooks Online Payroll for more detailed guidance.
If you have further questions or need assistance with steps, please leave a comment below. We are here to provide the necessary support.
