Can you create a custom liability payment in quickbooks online

I'm here to guide you on how you can create a custom liability payment in QuickBooks Online, @jont3.

You must set up QuickBooks to track and tax retirement plan contributions made by you or your employees. 

Note: The amount that an employee or employer can contribute to retirement plans is fixed. 

Before anything else, I suggest reviewing first the limits for your plan type.  Then, you can set up a retirement plan deduction or company match:

1. Open the Payroll menu, then click on Employees.
2. Pick your employee.
3. From Deductions & contributions, click on Start or Edit.
4. Choose + Add deduction/contribution.
5. Click on Retirement Plans in the Deduction/contribution type▼dropdown.
6. For Type, choose the applicable retirement plan.
   • If you need to track a company-only contribution with no employee match, select Company-only plan.
7. Fill in the name of the provider or plan in Description (appears on paycheck).
8. Finish the remaining fields.
9. If you have a company match, under Company contribution, choose the dropdown menu to choose how you want to calculate the amount.  Finish the new fields to enter the amount or percent per paycheck and annual maximum.
10. Click on Save then Done.

Here's a guide you can check in case you need to make changes to the deduction: Edit or remove a retirement plan deduction in QuickBooks Online.

I'm always ready to assist you further. Keep in touch if you have additional concerns with payroll or QuickBooks. Stay safe!

How do I create a custom liability payment in QB Online? I did it in Desktop but have no idea how to create it in QBO. I need to cut a check every two weeks to send Simple IRA deductions and contributions to the investment management company. Thanks!

Hello there, @KZK.

You can set up a retirement plan deduction or a company-match contribution item in QuickBooks Online Payroll (QBOP) so you can create a custom liability payment accordingly. I'll gladly guide you on how to do this below.

When your company or your employee contributes to a retirement plan, set it up in QuickBooks so it'll be reported on your payroll tax forms. To do this, here's how:

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Deductions & contributions, select Start or Edit.
4. Select + Add deduction/contribution.
5. Select Retirement plans in the Deduction/contribution type dropdown.
6. For Type, select the applicable retirement plan (Simple IRA). If you need to track a company-only contribution with no employee match, choose Company-only plan.
7. Enter the name of the provider or plan in Description (appears on paycheck).
8. Complete the remaining fields.
9. If you have a company match, under Company contribution, select the dropdown menu to choose how you want to calculate the amount. Complete the new fields to enter the amount or percent per paycheck and annual maximum.
10. Click Save,then Done.

Once you're done, run payroll and make sure the retirement amounts are showing in your employees' paychecks.

Also, there are a variety of payroll reports you can use to view information about your business finances, tax liabilities, and employees in QBOP. For the complete list of reports and how you can access them, please see this article: Run payroll reports.

If you have other payroll concerns or questions about managing employees in QBOP, please don't hesitate to let me know in the comments below. I'm always ready to help. Take care, @KZK.

You've listed instructions on how to withhold from an employee's paycheck twice, but never actually answered the question:  HOW DO YOU CREATE A CUSTOM PAYROLL LIABILITY PAYMENT for the benefits withholdings?  

Hi @MADRKTEK. Let me share some clarifications about creating a custom Payroll Liability payment.

After following the steps provided by my peer, @Rea_M, you can create a check to pay staff members. Before that, you can run the Payroll Deductions & Contributions report that covers the paycheck dates to pull up the total amount of each staff's benefits and contributions within that period or year.

Here's how:

1. Click the Gear icon and then switch to Accountant View.
2. Go to Reports and from the Payroll section, select Payroll Deductions & Contributions.
3. Adjust the Report period to custom.
4. Set the starting and ending date.
5. Hit Apply.

Once you see the accumulated Plan total, here's how to create a payment for your staff members:

1. Click + New and then select Check.
2. From the Payee field, select the staff member (or the tax agency if it's the tax agency who will pay the staff members directly).
3. Choose a bank account you use for the check.
4. From the Category details section, select the Custom Payroll Liability.
5. Enter the amount and then hit Save and close.

In addition, this article may come in handy: Run payroll reports. It covers our list of accumulated data available in your payroll service.

Please let us know if you need more assistance with this. I'll make sure to get back to you. Stay safe and well.

I reached Step 4 on Category details and is totally lost.  There is NO Custom Payroll Liability under the drop down menu.  I fould Payroll Liabilities with subcatorgories under that but NO Custom Payroll Liability.  And when I enter the amount what do I enter if there contribution from both my company and I.  Supposively I contributed $500 and my company contributed $500 what do I enter in the amount.  

Thank you.  However I am totally lost at:  #4. From the Category details section, select the Custom Payroll Liability.  I cant find the Custom Payroll Liability selection on the Drop down menu.  I only see subcatorgories from the Payroll Liabilities.  Also when you enter the amout.  What amount Do I enter if I have my contribution of $100, company contribution $500 and the total is $600.?  Also if I enter the total of $600 how will QB be able to classify $100 is my contribution and $500 is company?

Hello @Mugen, 

Could you please provide more details about the payroll item you're attempting to add? Additionally, are you trying to record a payroll history or a payment that was made outside of QuickBooks? This information will help us give you a precise solution to your issue. 

If you could click the Reply button below and add any additional information, that would be great. 

I look forward to hearing from you soon. Take care, and have a wonderful day!

I am trying to record a Simple IRA contribution from the employee and from the employer.  In the past on Desktop I would go to Employees-> Payroll Taxes & Liabilities -> Create Custom Liabilities-> click the IRA from employee and employer and click create.  

But for Online, I have already setup the payroll to withhold contribution from employee & employer.  I do see that the money has been withdrawn from my bank, But I don't know know to record it appropriately and how to designate what is contributed from the employee and from the employer.  EX: it with drawn $600.  However $100 is from employee and $500 is from employer.  Or is it necessary to separate the amount.

The post on 6/13/23 is fine till 4. From Category details section.  I cant find Custom Payroll Liability.  and second You can click +NEW anytime, I dont understand the reason of having to go to the Gear icon to switch Accountant view then to Report and adjust the Report period.  Because the +New -> Check is the same where or not I follow the initial Here's how 1-5 step.

I'm here to help you create a liability check, Mugen.

In QuickBooks Online Payroll, the system doesn't create automatic checks to pay non-tax liabilities. We'll need to add these payments manually. 

Beforehand, we won't be able to specify whether the contributions are from the employer or the employee. As a workaround, I recommend adding a hint on the Notes or Description field.

Here's how to create a check:

1. Go to the + New menu and then select Check.
2. Choose the account used for liability payments under the Bank Account drop-down menu.
3. From the Choose a payee drop-down menu, choose the vendor.
4. In the Category details section, select the account you use for tracking your liability payments, then enter the amount. If unsure, follow these steps to check your liability preferences:
   1. Select the Payroll menu.
   2. Go to the Employees tab, then select Payroll Setup.
   3. In the center column, select Accounting.
   4. Under the Tax Liability Accounts, you will see your current liability preferences.
5. On the Description field, add which one is for employee or employee.
6. If you have sub-accounts for each agency, add the specific accounts and enter the appropriate amount for the agency.
7. Fill in the rest of the transaction, then select Save and close.

For visual reference, I've added a screenshot below.

To learn more bout the process, please see our article: Create a Payroll Liability Check.

Furthermore, the IRS sets the maximum amount you can contribute to a retirement plan within a specific year. The limits for both you and your employee depend on various factors. It is advisable to consult your plan provider for detailed information about this.

I'm here to assist you with any future concerns you may have about managing your Simple IRA contribution in QuickBooks. I'll keep an eye on your response.

Thanks for the reply.  I have another question.  Do I still need to create a check if there was a Bank Feed to Catorgorize the transaction?  Or do I ONLY need to make changes to that bank feed transaction?  If so what changes should I make to that bank feed for the Simple IRA transaction from my bank

Here is an image of the bank feed for the Simple IRA deduction/transaction

Thank you for providing a screenshot. Let me jump into this thread and add some information about custom liability payment, Mugen.

In QuickBooks Online (QBO), you're unable to directly assign a liability account to a bank transaction. That's why, you'll need to create a check under the  + New menu so you can match it to the Simple IRA deduction. My colleague @CharleneMaeF already illustrated the specific steps to show you how. Follow the steps provided above.

After that, match the check to your downloaded transactions. I've added a sample screenshot on how you can match them:

1. Go to the Banking menu, then select Banking.
2. Locate the transaction and click Match.
   

Furthermore, compare each transaction with the ones entered into QuickBooks. And see if everything matches so you'll know which accounts are balanced and accurate. Check out this article for more details: Reconcile An Account In QuickBooks Online.

Keep me posted if you have any other concerns when creating liability payments. I'm always here to help you any time of the day. Have a great day ahead!