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Jan_P
April 8, 2024
Question

Categorizing Roth IRA deductions in quickbooks desktop

  • April 8, 2024
  • 1 reply
  • 0 views

Hi we use ADP to process our payroll.  We just started our state mandated retirement plan through MarylandSaves.  When I enter payroll into QB, how do I categorize the retirement deductions?  Should I create a sub category under payroll expense and label it MarylandSaves IRA?

1 reply

BigRedConsulting
BigRedConsulting
April 11, 2024

If these are employee deductions/contributions, they they're not an expense to the company, in the same way that employee paid taxes are not an expense. So, I'd probably use a liability account - as should also be used for those taxes.  Then when the money is remitted to the IRA provider, use that same liability account.

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