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Hailstorm
Level 1

Categorizing 401K payments to Guideline

Hi,

 

I've got 3 employees and have just started offering 401Ks through QBs payroll and their partner, Guideline. We are not yet matching contributions. The first deductions were made from paychecks in the last payroll run. All good. I've just downloaded a bank transaction representing a payment of the employee 401K contributions to Guideline. I'm confused as to how to categorize it in QBs? Is it assigned to one of the payroll liability accounts?

 

Appreciate any help here...

THX

P

Solved
Best answer March 04, 2021

Best Answers
john-pero
Community Champion

Categorizing 401K payments to Guideline

All employee deductions are company liabilities so the payment is a payment of the liability. This liability is already recorded in QB since you use QB payroll. A couple of ways to approach this, if tge liability shows in QB Payroll as unpaid, pay it (record the money movement) and match to the bank feed transaction. Or , starting with the feed item search for a match to find either the unpaid liability or the payment transaction made by QB on your behalf. 

 

Planning ahead, you will add employee match as a separate payroll item, which, when running payroll, will also become a payroll liability.  All payroll costs, including taxes, are posted on the date of payroll as accrued, even if you use cash basisvreporting

View solution in original post

2 Comments
john-pero
Community Champion

Categorizing 401K payments to Guideline

All employee deductions are company liabilities so the payment is a payment of the liability. This liability is already recorded in QB since you use QB payroll. A couple of ways to approach this, if tge liability shows in QB Payroll as unpaid, pay it (record the money movement) and match to the bank feed transaction. Or , starting with the feed item search for a match to find either the unpaid liability or the payment transaction made by QB on your behalf. 

 

Planning ahead, you will add employee match as a separate payroll item, which, when running payroll, will also become a payroll liability.  All payroll costs, including taxes, are posted on the date of payroll as accrued, even if you use cash basisvreporting

View solution in original post

Hailstorm
Level 1

Categorizing 401K payments to Guideline

Perfect! Thanks John! :)

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