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NMichRocks
August 23, 2021
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Why wont QB let me set up my 401k payment as a scheduled liability payment?

  • August 23, 2021
  • 1 reply
  • 0 views

I have the following payments scheduled, Health Savings deposits, Friend of the Court, payroll taxes, but QB doesn't give me the option to schedule a payment for my 401k payment after every payroll.  Why is that?  Using QB Premier.

Best answer by Maybelle_S

It's nice hearing back from you, @NMichRocks.

 

Let's get the 401 (k) contributions to show up as liabilities to pay.

 

Here are the possible reasons you're unable to see the 401 (k) liability amount: 

 

• The scheduled payment wasn't set up. 

• The posting liability account is incorrect. 

• The payroll liability isn't active in the Chart of Accounts. 

 

To help fix this, let's run the Payroll Liability Balances report. This way, we can check if the payroll item was correctly set up. Here's how:

 

1. Go to Reports menu at the top. 

2. Select Employees & Payroll, then choose Payroll Liability Balances.

3. Check the amount of the payroll item. If it's negative, there is an overpayment. 

 

If the payroll item is present on the report, you can create a payment schedule for payroll liabilities. Please take note that once you've set up a scheduled payment, it will no longer be removed. I'll guide you how:

 

1. Go to the Employees menu.

2. Select Payroll Center.

3. Click the Pay Liabilities tab.

4. At the bottom, under Other Activities, select Change Payment Method.

5. Go to Schedule payments, then select the tax liability you want to edit or schedule a payment for.

6. Select Edit.

7. Enter the appropriate information.

8. Select Finish, then click Finish Later.

 

If the payroll item isn't present on the report, it's possible that it was set up on the wrong account or inactive in Chart of Accounts. The posting liability account should have the Other current liabilities type. Here's how to check the liability account: 

 

1. Choose Lists menu at the top.

2. Select Payroll Item List.

3. Right click the Roth 401 (k) item, then choose Edit Payroll Item.

4. Select Next.

5. Change the liability account to Payroll Liabilities or any Other Current Liability account available for this payroll item.

6. Click Next until you can click Finish.

 

For more details, you can check out this helpful article: Edit Payment Due Dates/Methods are Missing Some Benefits and Other Payments.

 

Feel free to also visit our page about the articles to get started with Payroll for future reference: Commonly used articles to get started with Payroll.

 

Stay in touch with me how it goes on your end, @NMichRocks. Feel free to click the Reply button below if you have follow-up concerns. I'm always here to help.

1 reply

DivinaMercy_N
DivinaMercy_N
August 23, 2021

I'd be happy to provide you steps on setting up a scheduled payment for 401k in QuickBooks Desktop (QBDT), @NMichRocks.

 

To begin, let's make sure that your QBDT program is updated to the newest release version and you have the latest payroll tax table. This is to ensure that you have the latest system components and fixes.

 

When everything is set, here's how to create a scheduled liability payment:

 

  1. Navigate to the Employees tab and select Payroll Center.
  2. Next, go to the Pay Liabilities menu.
  3. From the Other Activities field, click Manage Payment Methods.
  4. Click the Benefit & Other Payments option and tick the Schedule Payments box.
  5. Highlight the 401k and click Edit.
  6. Change the information as needed.
  7. Once done, click Finish.

 

Check out this link for additional reference about setting up 401k in QBDT: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

 

Once you're ready to pay your scheduled liability, you can visit this article: Set up and pay scheduled or custom (unscheduled) liabilities. Just scroll down to the pay a scheduled liability section for the detailed steps. 

 

Should you have any other questions on setting up your 401k payment as a scheduled liability with QBDT, please let me know. I'm always here to help. Take care and stay safe.

N
NMichRocksAuthor
August 23, 2021

Yes, I follow, however my 401k plan payment does not show up in my list of “Benefit and Other Payments”, so there is no option to Edit settings.  What would cause that to happen?

M
Maybelle_SAnswer
August 23, 2021

It's nice hearing back from you, @NMichRocks.

 

Let's get the 401 (k) contributions to show up as liabilities to pay.

 

Here are the possible reasons you're unable to see the 401 (k) liability amount: 

 

• The scheduled payment wasn't set up. 

• The posting liability account is incorrect. 

• The payroll liability isn't active in the Chart of Accounts. 

 

To help fix this, let's run the Payroll Liability Balances report. This way, we can check if the payroll item was correctly set up. Here's how:

 

1. Go to Reports menu at the top. 

2. Select Employees & Payroll, then choose Payroll Liability Balances.

3. Check the amount of the payroll item. If it's negative, there is an overpayment. 

 

If the payroll item is present on the report, you can create a payment schedule for payroll liabilities. Please take note that once you've set up a scheduled payment, it will no longer be removed. I'll guide you how:

 

1. Go to the Employees menu.

2. Select Payroll Center.

3. Click the Pay Liabilities tab.

4. At the bottom, under Other Activities, select Change Payment Method.

5. Go to Schedule payments, then select the tax liability you want to edit or schedule a payment for.

6. Select Edit.

7. Enter the appropriate information.

8. Select Finish, then click Finish Later.

 

If the payroll item isn't present on the report, it's possible that it was set up on the wrong account or inactive in Chart of Accounts. The posting liability account should have the Other current liabilities type. Here's how to check the liability account: 

 

1. Choose Lists menu at the top.

2. Select Payroll Item List.

3. Right click the Roth 401 (k) item, then choose Edit Payroll Item.

4. Select Next.

5. Change the liability account to Payroll Liabilities or any Other Current Liability account available for this payroll item.

6. Click Next until you can click Finish.

 

For more details, you can check out this helpful article: Edit Payment Due Dates/Methods are Missing Some Benefits and Other Payments.

 

Feel free to also visit our page about the articles to get started with Payroll for future reference: Commonly used articles to get started with Payroll.

 

Stay in touch with me how it goes on your end, @NMichRocks. Feel free to click the Reply button below if you have follow-up concerns. I'm always here to help.

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