Reducing retirement plan liabilities

Hi there, @Jon H.

To clarify, did you enter an expense to record the liability payment? To reduce the payable, you'll have to debit liability and credit the bank account you used to pay it. I suggest reviewing the expense transaction you created. Then, select the appropriate liability account. However, ensure to consult an accountant to ensure everything is accounted properly. You may visit our Find-A-ProAdvisor site to search for certified professionals.

Follow these steps to edit the entry:

1. Go to the Gear icon and then Chart of Accounts.
2. Find the bank account used for payroll liabilities and click View register.
3. Find the transaction and select it.
4. Click Edit.
5. In the Category details section, make sure the appropriate liability account is entered.
6. Click Save and close.

Additionally, here are payroll taxes-related articles for additional reference and guide:

• Get Answers to Your Payroll Tax Payment and Filing Questions
• Make Payroll Tax Payments

If you have any other additional payroll concerns, please add them below. I'll be sure to help.

Gusto creates the liability during payroll.  I manually enter the expense when I transfer the funds to the solo 401k custodian.  Is there a way to link the expense to the liability to avoid having to debit the liability?