We have QB assisted payroll. The simple contribution is deducted from employees pay checks, then we send the contribution amount to the investment company. In the chart of accounts the Simple contribution account is showing a negative number, I don't understand why ?
Hey there, @mona6.
Thanks for reaching out to the Community.
To clarify, is the account a liability account? If so, you're on the right track. However, if the account has a negative balance, it sounds like you're not recording the payment of that liability account when you send the funds to the investment company. You'd need to record a transaction that takes money from the bank account that pays that liability. To know for certain that this is the case, I recommend contacting our support team as they have the tools available that can securely remote into your computer to see this visually. I've included the steps to contacting support below.
Please let me know if you have further questions or concerns. I'm happy to lend a helping hand anytime you need it. You can always reach out to the Community or me if you find you need assistance. Take care and have a good one!
Thank you for your response,
Yes, the simple account is set up as a liability account.
When I write the check to the investment company I post it against the same liability account, & the funds are taken from our bank account.
Do you know of anything else that I may be missing?
Thanks so much.
Thanks for adding more details about your concern, mona6.
When creating paychecks, the deductions are usually entered as a negative amount. It will increase the amount in the liability account.
There's a possibility that you have entered the deductions as positive amounts. Hence, the liability account's balance became negative.
I'd recommend going back to the paychecks you've previously created. Then, ensure that the deductions are entered as negative amounts.
Please let me know how these go so we can further review it.
Thank you for your reply.
We are set up with QB assisted payroll.
When processing payroll, I don't have to enter any information as far as deductions, taxes, etc. This information was already set up in the initial payroll process by qb.
Could there be something in the initial payroll set up of the accounts that I could check out?
Good day, mona6.
I'm joining this thread to share additional details about contribution. I understand that you need to verify what's happening why it's showing as negative on your Chart of Accounts. I suggest contacting our Customer Support Team. We have dedicated agents who'll check the set up of your payroll and the paychecks to see what's causing this behavior.
You can also check this link to get the direct link to our chat support team: Contact Support. Then, go to the QuickBooks Desktop Payroll section and click the Assisted hyperlink.
I'm just a post away if you need more help. Have a great day!