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0567
Level 1

How do I classify contributions to a defined benefit plan for my business?

How do I classify contributions to a defined benefit plan?

5 Comments 5
Mark_R
Moderator

How do I classify contributions to a defined benefit plan for my business?

I've got your back on classifying contributions in QuickBooks Desktop (QBDT), @0567.

 

You can set up contribution items using the Custom Setup to classify them based on their plan-type. However, I still recommend seeking help with your account to know the correct tax tracking type for your benefit plan.

 

Here's how:

 

  1. In your QuickBooks Desktop, go to the Lists menu and select Payroll Item List.
  2. Select New from the Payroll Item drop-down.
  3. Choose Custom Setup, then select Next.
  4. Fill out the necessary information, like the Contribution name, the Liability account, and the Expense account. Then, click Next.
  5. In the Tax Tracking Type window, select the tax tracking-type classification that matches your plan-type and click Next three times.
  6. If the same contribution rate or amount applies to all or most employees, enter it into the field at the top of the Limit Type window. 
  7. Click Finish to complete the setup.

I'm adding this article for more details: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

 

Keep in touch if you need any more assistance with this, or there's something else I can do for you. I've got your back. Have a good day.

Mark_R
Moderator

How do I classify contributions to a defined benefit plan for my business?

I'm back to make sure everything works fine, @0567.

 

Were you able to classify contribution items using the Custom Setup? If you need additional assistance with this, don't hesitate to leave a comment below.

 

Wishing you all the best.

NT24
Level 1

How do I classify contributions to a defined benefit plan for my business?

I am also trying to classify Defined benefit payment in QBO. I am new to QB and not sure if I should classify it as expense. And what's the "type". 

 

We write a check directly to brokerage firm under our company name for the DB plan. 

 

tks, NT

Sunbonn
Level 1

How do I classify contributions to a defined benefit plan for my business?

I have a Defined Benefit pension plan we just setup.   The money is a pool that is given by the company and not assigned as a payroll item during tenure, but rather calculated by an actuary at time of retirement based on salary, years with company etc.   How do I record the company annual contribution made to the brokerage in this case...it's not per employee, but rather a pool until later.   I need to create the pension in my books where it shows as expensed out to a tax deferred pension plan.  Please advise...thanks.

scottybean
Level 1

How do I classify contributions to a defined benefit plan for my business?

I'm looking for an answer to the question myself. 

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