I have gone through the steps on how to create a payroll item for a Roth 401k, what do I set the "Payable To" to? We have the traditional 401k referring to PX401EEPRE, is there a preset for a Roth account? When running payroll it will take it out of the post tax amount, if set up correctly, is this correct?
Hello again, Greenpointlm.
If it's done through Paychex, you'll want to contact their support. They will help you get the Payable To information.
Don't hesitate to get back to us if you have other payroll concerns.
For Paychex, if you need to send the payment, then it is the same as Child Support or any other Wage Garnishment. They tell you how much it is, which they did Not take from your bank and they did not include in takehome. That is your Liability to pay later. Example:
Gross Wages + Employer taxes = total Paydate expense
Amounts Deducted that you need to pay are in lieu of banking details.
Gross pay is broken out into Employee Takehome, Employee share of taxes, and Employee Deductions to repay employer loans or to have the Employer pay out as Child Support, Health Insurance and Retirement Contributions. That makes them Liabilities.
Debit Gross Wage expense
Debit Employer Tax expense
Credit Banking for Direct Deposit total
Credit Banking for Paper Checks issued by Paychex
Credit Liability for amounts not yet paid from Paychex, because the Employer will be making these payments
= everything is in balance, if you did that correctly.
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