Hello again, @branholm,
I hope that you've had a pleasant weekend. It's nice to hear that you're finding this information helpful and clarifying the questions that you have.
I can provide information to your question about there being a way for QuickBooks to record company contributions and employee deductions in separate liabilities so that the budget matches your P&L. A Profit and Loss report is going to track income and expense accounts, but not liability accounts, such as the one for the IRA contributions. Similarly, budgeting in QuickBooks Online also tracks income and expense accounts and not liability accounts. I'm including an article with additional information on budgeting in QuickBooks Online: How to Create Budgets and How Does Budgeting Work?.
The paying of a liability account is not going be an expense, or income, as it's paying something that the company is responsible for. One way that it can be looked at is if a person buys a computer using a credit card, the expense is going to be the computer and not the paying of the credit card bill. If this could be counted as an expense then a business could, in theory, take out loans and pay them immediately off and count them as expenses.
In order to track the IRA contributions made by the company, you can review the associated expense account from within the payroll settings. This would be an option to factor in these contributions when preparing the company budget. Here's how:
- Select the Gear icon and click Payroll Settings.
- Choose Accounting under Preferences.
- Review the account within Company Contribution Expense Accounts.
- If you should need to change it, select Customize at the bottom.
- Select the Upside down triangle next to the Retirement Contribution Account and choose the account that you'd like to use.
- Select Ok at the bottom of the page.
If you're needing to determine how much was contributed by employees and the company within a time period, one solution is to run a Payroll Deductions & Contributions report. You can do this with the following steps:
- Select Reports on the left navigation menu.
- Type in and select Payroll Deductions/Contributions in the report search bar.
- Filer the report for the desired date range.
- Click Run Report.
- You can see a breakdown of the amounts by selecting the blue number under PLAN TOTAL.
I've included a brief video to serve as a demonstration:
I hope that this post finds you with a smile. The Community has your back and is here should you have additional questions.