I will make two contributions for the entire year to my Vanguard solo 401k for both the employee and employer. How do I record the 401k bank deductions within Quickbooks?

Anonymous · ‎September 07, 2022

ReymondO · ‎September 07, 2022

Hey there, @Anonymous.

I'll help you set up a payroll item for 401K to record both employee and company contributions in QuickBooks Online (QBO) Payroll. Once you run a payroll, this will automatically record the deductions into your bank account. Here's how:

Go to Payroll, then select Employees.
Click the name of your employee and select the Pay pencil icon.
Go to Does employee have any deductions? section and click + Add/edit deductions.
Select + Add/edit deductions/contribution.
From the Deduction/contribution ▼ drop-down list, choose + Add deduction/contribution.
Select a Deduction/contribution type and Type.
Add a Description. This is the deduction or plan name which appears on paychecks.
Choose whether you want the deduction to be calculated as a Flat amount or Percentage of gross pay. Then enter the amount or percentage.
Click Save, then Done.

For more information, as well as how to assign retirement plan deductions and company contributions, I recommend the following article: Retirement plan deductions/contributions.

Drop me a comment below if you have further questions about setting up 401k or other related queries when adding payroll items. I'll be happy to help you some more.

View solution in original post

ReymondO · ‎September 07, 2022

Hey there, @Anonymous.

I'll help you set up a payroll item for 401K to record both employee and company contributions in QuickBooks Online (QBO) Payroll. Once you run a payroll, this will automatically record the deductions into your bank account. Here's how:

Go to Payroll, then select Employees.
Click the name of your employee and select the Pay pencil icon.
Go to Does employee have any deductions? section and click + Add/edit deductions.
Select + Add/edit deductions/contribution.
From the Deduction/contribution ▼ drop-down list, choose + Add deduction/contribution.
Select a Deduction/contribution type and Type.
Add a Description. This is the deduction or plan name which appears on paychecks.
Choose whether you want the deduction to be calculated as a Flat amount or Percentage of gross pay. Then enter the amount or percentage.
Click Save, then Done.

For more information, as well as how to assign retirement plan deductions and company contributions, I recommend the following article: Retirement plan deductions/contributions.

Drop me a comment below if you have further questions about setting up 401k or other related queries when adding payroll items. I'll be happy to help you some more.

tandtoz · ‎December 30, 2023

Hello Reymond,

I am trying to create a paycheck that includes a one time 20K 401K deduction. QB keeps telling me my net pay must be more than zero. It also wants to tax the 20K for FIT and SIT. I have spent HOURS trying to figure this out to no avail! The regular pay is $100 with a one time 20K 401K deduction. The 401K deduction account is set up as a flat rate. Do you have any suggestions?

Thank you.

JanbonN · ‎December 30, 2023

Hello, @tandtoz.

It appears you have posted a similar question to one my colleague has already answered. I suggest visiting the response through this link for the details.

Please let us know if you need further assistance with QuickBooks-related concerns. We'll do our best to assist you. Take care.

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I will make two contributions for the entire year to my Vanguard solo 401k for both the employee and employer. How do I record the 401k bank deductions within Quickbooks?