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Experienced Member

roth 401k for employee

I have set up 401k and have run for 5 years.  New plan and we are offering Roth 401k. 

 

I set up roth 401k and it is taking $ out of paycheck and employer contributions are correct.

 

After payroll there is not a liability to pay for the roth 401k employee contribution.  what did I do wrong or do I have to do a journal entry for this item?

Solved
Best answer 03-07-2019

Accepted Solutions
QuickBooks Team

Re: roth 401k for employee

Thanks for reaching out to us here in the Community, @drjameso1

 

Let's get the Roth 401 (k) contributions to show up as liabilities to pay.

 

Here are the possible reasons you're unable to see the Roth 401 (k) liability amount: 

 

  • The scheduled payment wasn't set up. 
  • The posting liability account is incorrect. 
  • The payroll liability isn't active in Chart of Accounts

To help fix this, let's run the Payroll Liability Balances report. This way, we can check if the payroll item was correctly set up. Here's how: 

 

  1. Go to Reports menu at the top. 
  2. Select Employees & Payroll, then choose Payroll Liability Balances. 
  3. Check the amount of the payroll item. If it's negative, there is an overpayment. 

If the payroll item is present on the report, you can create a payment schedule for payroll liabilities. Please take note that once you've set up a scheduled payment, it will no longer be removed. Here's how: 

 

  1. Go to the Employees menu.
  2. Select Payroll Center.
  3. Select the Pay Liabilities tab.
  4. At the bottom, under Other Activities, select Change Payment Method.
  5. Go to Schedule payments, then select the tax liability you want to edit or schedule a payment for.
  6. Select Edit.
  7. Enter the appropriate information.
  8. Select Finish, then click Finish Later.

If the payroll item isn't present on the report, it's possible that it was set up on the wrong account or inactive in Chart of Accounts. The posting liability account should have the Other current liabilities type. Here's how to check the liability account: 

 

  1. Choose Lists menu at the top.
  2. Select Payroll Item List.
  3. Right click the Roth 401 (k) item, then choose Edit Payroll Item.
  4. Select Next.
  5. Change the liability account to Payroll Liabilities or any Other Current Liability account available for this payroll item.
  6. Click Next until you can click Finish.

Here's how to check that payroll liabilities is active in Chart of Accounts

 

  1. Choose Lists menu at the top.
  2. Select Chart of Accounts.
  3. At the bottom of the Chart of Accounts, select the Include Inactive checkbox.
  4. Find payroll liabilities with a type of Other Current Liability.
  5. If the account has an X to the left, click to remove it.
  6. Clear the Include Inactive checkbox.

For more details, you can check out this helpful article: Edit Payment Due Dates/Methods are Missing Some Benefits and Other Payments

 

Stay in touch with me how it goes on your end, @drjameso1. Feel free to click the Reply button below if you have follow-up concerns. I'm always here to help. Have an awesome day!

2 Comments
QuickBooks Team

Re: roth 401k for employee

Thanks for reaching out to us here in the Community, @drjameso1

 

Let's get the Roth 401 (k) contributions to show up as liabilities to pay.

 

Here are the possible reasons you're unable to see the Roth 401 (k) liability amount: 

 

  • The scheduled payment wasn't set up. 
  • The posting liability account is incorrect. 
  • The payroll liability isn't active in Chart of Accounts

To help fix this, let's run the Payroll Liability Balances report. This way, we can check if the payroll item was correctly set up. Here's how: 

 

  1. Go to Reports menu at the top. 
  2. Select Employees & Payroll, then choose Payroll Liability Balances. 
  3. Check the amount of the payroll item. If it's negative, there is an overpayment. 

If the payroll item is present on the report, you can create a payment schedule for payroll liabilities. Please take note that once you've set up a scheduled payment, it will no longer be removed. Here's how: 

 

  1. Go to the Employees menu.
  2. Select Payroll Center.
  3. Select the Pay Liabilities tab.
  4. At the bottom, under Other Activities, select Change Payment Method.
  5. Go to Schedule payments, then select the tax liability you want to edit or schedule a payment for.
  6. Select Edit.
  7. Enter the appropriate information.
  8. Select Finish, then click Finish Later.

If the payroll item isn't present on the report, it's possible that it was set up on the wrong account or inactive in Chart of Accounts. The posting liability account should have the Other current liabilities type. Here's how to check the liability account: 

 

  1. Choose Lists menu at the top.
  2. Select Payroll Item List.
  3. Right click the Roth 401 (k) item, then choose Edit Payroll Item.
  4. Select Next.
  5. Change the liability account to Payroll Liabilities or any Other Current Liability account available for this payroll item.
  6. Click Next until you can click Finish.

Here's how to check that payroll liabilities is active in Chart of Accounts

 

  1. Choose Lists menu at the top.
  2. Select Chart of Accounts.
  3. At the bottom of the Chart of Accounts, select the Include Inactive checkbox.
  4. Find payroll liabilities with a type of Other Current Liability.
  5. If the account has an X to the left, click to remove it.
  6. Clear the Include Inactive checkbox.

For more details, you can check out this helpful article: Edit Payment Due Dates/Methods are Missing Some Benefits and Other Payments

 

Stay in touch with me how it goes on your end, @drjameso1. Feel free to click the Reply button below if you have follow-up concerns. I'm always here to help. Have an awesome day!

Experienced Member

Re: roth 401k for employee

YEAAAAAA.  Thanks!!!.  I spent a few hours researching before posting.  After following  your directions fixed in a matter of minutes.    :::))))))))