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J
Jren
December 11, 2018
Question

401K and Profit Sharing setup in QB!!!

  • December 11, 2018
  • 2 replies
  • 0 views

The company I work for is starting a 401K with employer match and a profit sharing plan. I need to know how to set up an account in chart of accounts (which type account?) for each and how to record them from oustsourced payroll.

2 replies

qbteachmt
qbteachmt
December 11, 2018

You don't need more accounts. If you want to track the employer share separately, go ahead and make one expense account for Employee Benefits, if you don't already have one.

Then, in Payroll, you make a new payroll item; choose EZ. Now you follow the steps.

Please see my attachments; I show the 401 and 403 setup.

    J
    JrenAuthor
    December 11, 2018
    I am using an outsourced payroll company.. not QB. When they send the report I put it into QB. Is the 401k a payroll liability? The profit share is an expense?
    qbteachmt
    qbteachmt
    December 11, 2018

    "I am using an outsourced payroll company"

    Like this:

    The Employee amount is no different than their share of their taxes.

    The Employer amount is no different than your share of taxes. I don't know if you are managing this as liability, expense, some of each, or if your Provider manages this via "tax impound."

    And the Employer 401(k) item, if the payroll service isn't including this, you don't need to, either. When you Pay it, it can be Expense. Or, you did accrue it first, so that makes it liability In and liability Out. Example:

    Payroll results in you needing to send $3,000 of Employee funds to the 401(k) service + your own share as Expense. That works fine.


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