Booking Employer contributions to 401k

Anonymous · ‎December 07, 2017

I'm sure this question has been raised, but I can't find an answer. We use Intuit Enhanced payroll with Quickbooks Desktop Pro Plus 2016. Using payroll, how should Employer contributions to a 401K be entered? I know how to book Employee contributions - create a 401K deduction.

More info: When payment to the 401K plan custodian (Nationwide Trust) for profit-sharing (deferred compensation/401(k) plan) was made, the entry recording the check was a debit to profit sharing expense.

Question: using payroll, how to enter employer 401K contributions, so annual payroll reports show the amount of contributions made. (I understand that employer contribution amounts do not show on paychecks, but do show on certain payroll reports).

Related tax question: After perusing (reading closely) IRS W-2 instructions, I nowhere reporting the amount of employer contributions to a deferred compensation plan is required. Have I overlooked this requirement?

john-pero · ‎December 07, 2017

Start by going into your payroll item list to see if 401k Company Match is already there. Usually when you set up the item for employee contribution the employer share is also created. On each employee info under Payroll Info wi be a whoe section to the right for Additions Deductions and Company Contributions. You have to have bothe the employee and employer item there and the appropriate % for each (they can be different for every employee

Hope this helps

View solution in original post

john-pero · ‎December 07, 2017

Start by going into your payroll item list to see if 401k Company Match is already there. Usually when you set up the item for employee contribution the employer share is also created. On each employee info under Payroll Info wi be a whoe section to the right for Additions Deductions and Company Contributions. You have to have bothe the employee and employer item there and the appropriate % for each (they can be different for every employee

Hope this helps

Anonymous · ‎December 07, 2017

Hey there @Anonymous,

It looks like @john-pero already provided some awesome insight into how 401k deductions and contributions work. If you need to know how to enter this information into QBO, here is a useful link that explains the process step-by-step. Essentially, you can enter and make adjustments to 401k per employee from the Payroll module. This conversation thread might also be insightful if you need to make adjustments.

I hope this helps! And a warm welcome to the QB Community.

Anonymous · ‎December 11, 2017

Hey @Anonymous,

Did you try out @john-pero's advice? Were you able to update your employees' 401k contributions?

Bsnye · ‎November 05, 2020

So if the Employer Match for the 401K is under company contributions and employee contributions are taking out of the payroll, how do you actually pay the invoice to the 401K company. I have a hard time entering the amount because it already shows up in company contributions. ( I cant reconcile with leaving the amount actually paid to that fund out)

fjg_admin · ‎August 30, 2021

I'm curious if you ever found a solution to this. I'm having the same issue. I can get the information from my payroll download OK, but then when the bill is paid to the 401K admin company, it doubles the contribution in my books.

DebSheenD · ‎August 30, 2021

I've got you covered, fjg_admin.

I can help you fix the doubled amount of your 401K contribution payment.

Let's check if the items for the employee and employer are correct. If everything works it would show in your books accurately.

Paying payroll liabilities and making bill payments can cause a double entry in QuickBooks. To correct this, we can delete the duplicate one.

Here's how:

Click on the Employee menu from the top menu bar.
Then, select the Payroll Centre and then click on the Pay Employees tab.
Find and hit the click on the Payroll in the recent payroll field.
Now, you need to select the list of payroll items you required.
Click on the Delete button.
A confirmation message will appear on your screen, click on the Yes button and you are all done with this program.

I've also added this article that'll help you adjust payroll liabilities and to correct if the payroll item is not calculated.

Feel free to click the reply button if you have other questions about retirement contributions. I'm always here to help.

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Booking Employer contributions to 401k