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Logging Employer contributions to 401k profit share

We have the regular company contributions set up as well as employee elective.  However, we also do profit sharing at the end of each year.  How to I enter this in QB?  I have multiple sub questions.  We're a small company and just getting started with 401K and profit sharing.


1.  Is it just 1 lump-sum entry?

2.  Is the entry done as Payroll expenses (401K Match)?

3.  Is the entry done as Payroll liability (401K Match or 401K Payable)?

4.  Assuming #1 is not a lump entry, do I need to do log it for each employee, based on the amount paid to them?  If so, how and where?


Thank you!


4 Comments 4
Level 7

Logging Employer contributions to 401k profit share

This depends on when you assume the liability for the profit sharing and when you pay it out.  If timing is not an issue, you simply add the profit sharing to each employees paycheck.  You will need a new payroll item.  It is a 401K match on the expense side and a 401K liability on the liability side.  You then pay the payroll liability when you remit the check for profit sharing.


Not applicable

Logging Employer contributions to 401k profit share

Good morning.  The actual payout from the 401K to employees will be years down the road.


I need to enter this as a 2018 expense so should I manipulate the last payroll done in 2018, adding the 401K Match or should I make a dummy payroll entry in 2018 and zero out the pay, just leaving the 401K Match?


Thank you!

Not applicable

Logging Employer contributions to 401k profit share

Apologies if this comes through twice.


The actual payment to the employee from the 401K account will be years down the road of course.


I have to code this as 2018 expense, so should I go and manipulate the last paycheck adding the 401K Match and then process the liabilities against it or make a dummy payroll payment zeroing out salary and just adding 401K match?


Thanks again!

QuickBooks Team

Logging Employer contributions to 401k profit share

Thanks for getting back to the QuickBooks Community, ricko1975


Allow me to step in and help provide some additional information about recording payroll contribution. 


Since this is a 2018 expense and to avoid incorrect tax calculation for the last paycheck, you can make a dummy payroll and add the 401K match item to zero out the liability amount. 


To create an dummy payroll, you can check this article and scroll down to Unscheduled PayrollCreate paychecks


If you need further assistance with the steps, I recommend contacting our QuickBooks Desktop Payroll Support Team. They have additional tools to pull up your account and do a screen-share.


Here's how you can contact our customer support:

  1. Select QuickBooks Desktop Help from the Help menu.
  2. You can also press F1 on your keyboard to bring up the same Help Panel. 
  3. In order to route you to the correct support expert, we need to know what type of question you have.
  4. Click Continue.
  5. We’ll provide you a few options. You choose which one is best for you.

Please know that you're always welcome to post if you have additional questions about the payroll. I'm always here to help. Wishing you and your business continued success. 


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