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fisherhouseinc
March 12, 2024
Question

Terminated employees 403b

  • March 12, 2024
  • 1 reply
  • 0 views

An employee left the company before they were vested in the company 403b plan. We have now received a check from the financial institution for the Employer contributions. I'm tempted to deposit the check and apply it to the GL account where I recorded it as an expense, but this might leave a credit balance in that area on the P&L report because the amount covers a couple of years. 

 

Please give me step by step instructions on how to process this from the deposit to any Journal entries or payroll liabilities.

 

Just to be sure no one misuderstands, the employee got to keep whatever funds they put in. The funds returned were only the employers match.

1 reply

JenoP
JenoP
March 12, 2024

I'm happy to see you in the Community, fisherhouseinc. Allow me to help you record a deposit for the employer contribution of the 403b.

 

I'd like to ask what you mean by processing the deposit from any journal entries or payroll liabilities. Can you also tell us what version of QuickBooks you're using? This is for us to make sure we share the best steps and make sure everything is recorded accordingly. 

 

In the meantime, you can also follow these steps to create a bank deposit to record the check for the employer's portion of the retirement fund: 

 

QuickBooks Desktop

 

  1. Go to your Homepage and select Record Deposits / Make Deposits.
  2. Select the bank you want to put the money into in the Deposit to field, then choose a date and put in a memo if needed.
  3. Under the Received From column, select the financial institution where the check was from.
  4. Select an account in the From Account field. You may also need to check with your accountant if you're not sure what account to use for this deposit.
  5. Type in the check number and amount.
  6. Click Save and close. 

 

QuickBooks Online

 

  1. Click the + New button and select Bank Deposit.
  2. Go to the drop-down list for Account ▼, then choose the account you want to put the money into.
  3. Under the Received From column, select the financial institution where the check was from.
  4. Select an account in the From Account field and enter all other details.
  5. Click Save and close.

 

Let me share these articles that share more details about making a bank deposit:

 

 

I also wanted to give you additional resources in case you might need them when managing retirement or employee benefits in QBO: 

 

 

Don't hesitate to visit and post questions if you need anything else when running payroll and recording business transactions in QuickBooks, fisherhouseinc. The Community is always here to offer our help again when you need it.

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