Reverse a 401K Employer Match

Hi there, @April44. We're pleased to have you here. I'm here to guide you on how to remove the 401K employer match.

To reverse the match and ensure accurate payroll records, you can utilize the Adjust Payroll Liabilities feature. Here's how:

1. Go to Employees, then Payroll Taxes and Liabilities. 
2. Select Adjust Payroll Liabilities.
3. In the Date and Effective Date fields, select the last paycheck date of the affected month or quarter.
4. In the Adjustment is for section, select Employee. Then, select the employee's name. Do this even if the item being adjusted is a company-paid item.
5. In the Taxes and Liabilities section, select the Item Name column and select the payroll item for the 401K employer match.
6. Enter the amount of the adjustment. 
   • If the item is under-withheld, enter a positive amount to increase. 
   • If the item is over-withheld, enter a negative amount to decrease.
7. Select Accounts Affected, then choose Do not affect accounts or Affect liability and expense accounts.
   • To leave the balances unchanged for the liability and expense accounts that track the payroll items you are adjusting, select Do not affect accounts. The adjustment will still change the year-to-date amounts on your payroll reports.
   • To enter an adjusting transaction in the liability and expense accounts that track the payroll items you are adjusting, select Affect liability and expense accounts.
8. Select OK to close the Affect Accounts window.
9. Select OK again to record the adjustment.

You may also refer to this article: Adjust Payroll Liabilities.

By following these steps, you can reverse the 401K employer match without affecting the payroll check. Remember to review your payroll reports and ensure that the adjustments are reflected correctly.

The Community is always here if you need further assistance with running payroll. We're always around to help. Have a wonderful day!

I followed these steps & it did NOT change my total on the payroll summary report. The check was dated 06/23/23 & that's the date I used in the Date & Effective Date fields. Is that correct? I went back through the steps twice & my summary report didn't change. Can I just zero it out on the actual check, would that work?

This worked. I needed to select Employee Adjustment & not Company (as previously provided in solution).

Thanks for keeping us updated, @April44.

It's glad to know that my colleague is able to help you accomplish your goal of adjusting payroll liabilities. 

Feel free to reach out whenever you need assistance with payroll or QuickBooks. The Community is available to lend a hand to you and your business. Have a great rest of the week, and stay healthy!