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J
jont3
July 6, 2022
Question

Can you create a custom liability payment in quickbooks online

  • July 6, 2022
  • 1 reply
  • 0 views
multiple staff members holding aside pretax 401k for me to deposit for them

1 reply

M
Mich_S
July 6, 2022

I'm here to guide you on how you can create a custom liability payment in QuickBooks Online, @jont3.

 

You must set up QuickBooks to track and tax retirement plan contributions made by you or your employees. 

 

Note: The amount that an employee or employer can contribute to retirement plans is fixed. 

 

Before anything else, I suggest reviewing first the limits for your plan type.  Then, you can set up a retirement plan deduction or company match:

 

  1. Open the Payroll menu, then click on Employees.
  2. Pick your employee.
  3. From Deductions & contributions, click on Start or Edit.
  4. Choose + Add deduction/contribution.
  5. Click on Retirement Plans in the Deduction/contribution type▼dropdown.
  6. For Type, choose the applicable retirement plan.
    • If you need to track a company-only contribution with no employee match, select Company-only plan.
  7. Fill in the name of the provider or plan in Description (appears on paycheck).
  8. Finish the remaining fields.
  9. If you have a company match, under Company contribution, choose the dropdown menu to choose how you want to calculate the amount.  Finish the new fields to enter the amount or percent per paycheck and annual maximum.
  10. Click on Save then Done.

Here's a guide you can check in case you need to make changes to the deduction: Edit or remove a retirement plan deduction in QuickBooks Online.

 

I'm always ready to assist you further. Keep in touch if you have additional concerns with payroll or QuickBooks. Stay safe!

K
KZK
June 11, 2023

How do I create a custom liability payment in QB Online? I did it in Desktop but have no idea how to create it in QBO. I need to cut a check every two weeks to send Simple IRA deductions and contributions to the investment management company. Thanks!

R
Rea_M
June 11, 2023

Hello there, @KZK.

 

You can set up a retirement plan deduction or a company-match contribution item in QuickBooks Online Payroll (QBOP) so you can create a custom liability payment accordingly. I'll gladly guide you on how to do this below.

 

When your company or your employee contributes to a retirement plan, set it up in QuickBooks so it'll be reported on your payroll tax forms. To do this, here's how:

 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Deductions & contributions, select Start or Edit.
  4. Select + Add deduction/contribution.
  5. Select Retirement plans in the Deduction/contribution type dropdown.
  6. For Type, select the applicable retirement plan (Simple IRA). If you need to track a company-only contribution with no employee match, choose Company-only plan.
  7. Enter the name of the provider or plan in Description (appears on paycheck).
  8. Complete the remaining fields.
  9. If you have a company match, under Company contribution, select the dropdown menu to choose how you want to calculate the amount. Complete the new fields to enter the amount or percent per paycheck and annual maximum.
  10. Click Save,then Done.

 

Once you're done, run payroll and make sure the retirement amounts are showing in your employees' paychecks.

 

Also, there are a variety of payroll reports you can use to view information about your business finances, tax liabilities, and employees in QBOP. For the complete list of reports and how you can access them, please see this article: Run payroll reports.

 

If you have other payroll concerns or questions about managing employees in QBOP, please don't hesitate to let me know in the comments below. I'm always ready to help. Take care, @KZK.

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