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Operations22
December 15, 2023
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401K Contribution Remittance

  • December 15, 2023
  • 1 reply
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How to record remittance of 401K contributions?

 

We remit these contributions weekly. All 401k employee and employer contributions are classified as payroll expenses on our Profit and Loss. My question is, when reconciling the bank account, how do I record the remittance of these contributions to ADP so it could be deducted from the bank balance in QuickBooks? I cannot record it as bills payment since the 401K contributions (EE and ER) are already recorded as payroll liabilities, if I created a bill to remit the contributions to ADP, it would double the expense.

Best answer by Maybelle_S

Hello there, Operations22.

 

I understand the complexity of reconciling 401K contribution remittances in QuickBooks Desktop (QBDT).

 

To accurately record the remittance, we can write a check if you're using ADP to process your payroll. Doing so will deduct funds from the bank balance without affecting the expense accounts.

 

Here's how:

 

  1. Go to the Banking menu.
  2. Select Write Checks.
  3. Choose the Bank Account from the drop-down arrow.
  4. Put Pay to the order of.
  5. Choose the Account.
  6. Enter the Amount and other information needed.
  7. Hit Save & Close.

 

I also recommend seeking assistance from your accountant to help you choose the correct account.

 

Furthermore, ADP handles all employee deductions from gross wages. You don't need to separately record them in the program since you don't produce or file any payroll forms, including W2.

 

Additionally, you can refer to this article for steps about setting up scheduled payments and creating checks for benefits, deductions, and plan administrators like 401(k), insurance premiums, or garnishments: Pay your non-tax liabilities.

 

Let me know if you have other concerns about recording 401k in QuickBooks. I'm always here to help. Take care.

1 reply

M
Maybelle_SAnswer
December 15, 2023

Hello there, Operations22.

 

I understand the complexity of reconciling 401K contribution remittances in QuickBooks Desktop (QBDT).

 

To accurately record the remittance, we can write a check if you're using ADP to process your payroll. Doing so will deduct funds from the bank balance without affecting the expense accounts.

 

Here's how:

 

  1. Go to the Banking menu.
  2. Select Write Checks.
  3. Choose the Bank Account from the drop-down arrow.
  4. Put Pay to the order of.
  5. Choose the Account.
  6. Enter the Amount and other information needed.
  7. Hit Save & Close.

 

I also recommend seeking assistance from your accountant to help you choose the correct account.

 

Furthermore, ADP handles all employee deductions from gross wages. You don't need to separately record them in the program since you don't produce or file any payroll forms, including W2.

 

Additionally, you can refer to this article for steps about setting up scheduled payments and creating checks for benefits, deductions, and plan administrators like 401(k), insurance premiums, or garnishments: Pay your non-tax liabilities.

 

Let me know if you have other concerns about recording 401k in QuickBooks. I'm always here to help. Take care.

O
Operations22Author
December 15, 2023

My concern is the step # 5 as I'm not sure what account to use that won't affect the liabilities.

    J
    JM147258
    May 13, 2025

    I don't see a response. Was there any suggestion as to what account we could assign this line item in the check register?

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