One time- end of year profit sharing contribution into an employee 401k plan using Quickbook online payroll

hemakumari-itsno · ‎December 06, 2022

My question is similar to these topics

https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/how-do-we-make-a-one-time-en...

https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/booking-a-s-corp-profit-shar...

Single owner LLC being taxed as S-corp. I am the only employee/owner.

I am planning to do 25% Profit sharing contribution towards 401k in this paycheck (using quickbook online payroll) and followed:

Select Employees.
Find and open the employee's profile.
Under Deduction/Contribution, choose Retirement Plans.
Company contributions --> Flat Amount (whatever the 25% of gross)

Is this correct? Do we need to annotate anywhere that this is profit sharing? could someone please advise.

SarahannC · ‎December 07, 2022

Hi hemakumari-itsno,

I appreciate you for gathering some references and trying to read the information shared in those articles.

Yes, you're right. In QuickBooks Online Payroll, creating a company contribution is the right thing to do for a 25% Profit sharing contribution towards 401k in a particular paycheck. We can still use this article for further details and guidance: Learn how to set up company contribution in QuickBooks Online Payroll.

Regarding the documentation/annotated, it's best to consult your accountant to ensure we do it correctly for profit sharing. If you are trying to find a new one, we have Intuit Find-A-ProAdvisor site that can help you to find certified professionals in your area.

We have a few reports that we can pull into your book. Please see this link to review the report lists and decide what you want to generate according to your needs: Run payroll reports in QuickBooks Online Payroll.

Let me know if you have more concerns about managing employee's paycheck and other details. I'm here wiling to help you anytime. Stay safe and have a good one.

View solution in original post

SarahannC · ‎December 07, 2022

Hi hemakumari-itsno,

I appreciate you for gathering some references and trying to read the information shared in those articles.

Yes, you're right. In QuickBooks Online Payroll, creating a company contribution is the right thing to do for a 25% Profit sharing contribution towards 401k in a particular paycheck. We can still use this article for further details and guidance: Learn how to set up company contribution in QuickBooks Online Payroll.

Regarding the documentation/annotated, it's best to consult your accountant to ensure we do it correctly for profit sharing. If you are trying to find a new one, we have Intuit Find-A-ProAdvisor site that can help you to find certified professionals in your area.

We have a few reports that we can pull into your book. Please see this link to review the report lists and decide what you want to generate according to your needs: Run payroll reports in QuickBooks Online Payroll.

Let me know if you have more concerns about managing employee's paycheck and other details. I'm here wiling to help you anytime. Stay safe and have a good one.

hemakumari-itsno · ‎December 08, 2022

Thank you for the reference and answer!

My "annotation" question was towards, how QB treats this 25% contribution while generating tax documents.

In terms of book-keeping, our accountant took care of it.

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One time- end of year profit sharing contribution into an employee 401k plan using Quickbook online payroll