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Is 401K deposit to financial institution considered an expense?
Is profit sharing employee contribution considered an expense?
Both have been entered in employees paycheck but wasn't sure how to setup deposit to financial institution
401k's often have 3 parts:
#1- Employee-paid contribution
#2- Employer-paid matching contribution
#3- Employer-paid profit sharing contribution
#1- Employee-paid so is not company expense
#2/3- Employer-paid so yes these are expenses
Assuming you are referring to one of these entries, the other side of the entry is usually a 2x liability account until the cash is paid.
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