Hello everyone,

I found this explanation online and want to confirm if it’s correct for QuickBooks Online Payroll:

While the expense and liability are both affected, the direct mapping within the payroll item setup often focuses on which account the liability accumulates in. QuickBooks then generates the corresponding expense entry automatically as part of the overall payroll journal entry. So, you might primarily select the liability account in the setup, and the system handles the expense part behind the scenes.

 

If this is correct, does that mean:

• For a Simple IRA company contribution, I would map it to the Company Match Liability account, and QBO would automatically create the related expense entry in the Company Match Expense account?

I want to ensure liabilities zero out after provider payments and that my P&L reflects the company match expense in the same period payroll is run.

Thank you,

M