401K and Profit Sharing setup in QB!!!

You don't need more accounts. If you want to track the employer share separately, go ahead and make one expense account for Employee Benefits, if you don't already have one.

Then, in Payroll, you make a new payroll item; choose EZ. Now you follow the steps.

Please see my attachments; I show the 401 and 403 setup.

"I am using an outsourced payroll company"

Like this:

The Employee amount is no different than their share of their taxes.

The Employer amount is no different than your share of taxes. I don't know if you are managing this as liability, expense, some of each, or if your Provider manages this via "tax impound."

And the Employer 401(k) item, if the payroll service isn't including this, you don't need to, either. When you Pay it, it can be Expense. Or, you did accrue it first, so that makes it liability In and liability Out. Example:

Payroll results in you needing to send $3,000 of Employee funds to the 401(k) service + your own share as Expense. That works fine.

can you share the attachments

Can you please share the attachments

You don't seem to be using QB Desktop for Payroll, so the attachments don't apply.

thanks-  Does the 401(k) employee and employer match need to be coded any specific way?  Im thinking the employer match would just go in as an expense and the employee contribution as a current liability- or do we even need to account for it seeing how the payroll company already is?

@Heather M1009

Your own topic is elsewhere; here:

https://quickbooks.intuit.com/community/Other-questions/401-k-set-up-for-a-company-that-uses-an-outs...

You don't post Liability, unless the Employer is responsible for the Banking to pay out funds, later.

The employee share is from their Gross; that is already in the Gross. There is no further Expense for it. The employer share is no different than Employer share of taxes.

Please see your own topic.

what EZ meaning?

I have the same question about employee 401k account. what EZ means?

Hi there, @BICIUSA.

The EZ set up is found when you create a payroll item. Let me provide some details.

When you create a payroll item, you’ll be prompted to choose between EZ set up and Custom set up. The EZ set up, automatically creates the payroll item for you. While the Custom setup lets you manually enter the payroll item information.

The one mentioned above is the EZ set up. Here’s how you can create the payroll item:

1. Click the Lists menu.
2. Choose Payroll Item List.
3. Select New.
4. Choose EZ set up.
5. Select either Company Contribution or Addition, and select Next.

Please reach out again to us if you have any questions about creating a payroll item. We'll be here to assist you.

Since the profit sharing funds for 2019 will be deposited in 2020, how do you make the reporting and W2 information reflect those amounts?

Also in the Payroll Item list can I create another item as "401k PROFIT SHARING" and assign the TAX TRACKING type as "401k Company match"? It is not really a match but cannot find any other type to assign.

Thanks for your advice!

Were you able to find out how to proceed with the profit sharing contributions? I have exactly the same problem. If you have the answer, could you please share?

Thanks!