We do not use QB Payroll but use another company and QB online. Every payroll, I manually post via journal entry Worker's Comp, Payroll Taxes, Wages etc. but all taxes etc. are handled through the outsourced company. We are just now starting a SIMPLE-IRA for our employees with a 3% company match. Payroll happens every 2 weeks. I need to understand how to account for the employee and employer contributions which will stay in our bank account until month end when I initiate a transfer from our bank to Fidelity. I am unsure how to account for these funds at payroll time (somehow posting to a liability account?) so the funds stay in our bank account but accounted for accurately until the date I send those funds out. Could someone help me with that? My plan was to figure out what accounts to post to (debits and credits) so that while posting payroll those IRA amounts could be accounted for on the same journal entry. Thanks.
