File federal/state withholding for profit sharing disbursement
I am using QB Desktop. An employee has cashed out her profit-sharing account and I need to make the federal and state withholding payments for this money, and cut a check to her for the remainder. This is not like a 401k and the funds are managed by a third party, and is not connected to QB. How do I go about making the payments?
If you’re unsure of what accounts to debit and credit, I recommend working with your accountant for guidance. This way, we can ensure the accuracy of your accounts after recording this.
If you’re not affiliated with one, you can visit our ProdAvisor page and find one from there. Let me also add this article that you can use for your future reference: Reconcile an account in QuickBooks Desktop. This link can walk you through the steps in matching your transactions effectively.
You can always get back to me if you have any other concerns or follow-up questions about recording your tax payment in QuickBooks. I’ll be around to back you up. Have a good one!