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May 13, 2022
Question

Setting Up CalSavers Clearing Account and Recording Payments of Employee Contributions

  • May 13, 2022
  • 1 reply
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I have already set up my employees' CalSavers Retirement Savings contributions in payroll and have created a clearing account in QB Online where the employees' CalSavers contributions are recorded/held.

 

Here are my questions:

 

1) How do I take money from the CalSavers clearing account and transfer it to our main checking so I can record the payments for our employees' CalSavers Retirement Savings contributions to CalSavers from our main checking register?

 

2) Once the money is transferred from the CalSavers clearing account to our main checking, do I record the payment to the employees' CalSavers accounts as an expense?

 

3) What accounting category do I use to record the payments to CalSavers out of our main checking?

 

3) The amounts I am showing in the CalSavers clearing account are currently in the negative. It is my understanding that I should show a positive balance in the CalSavers clearing account once the contributions are recorded through payroll and transferred into the clearing account. Why am I showing a negative balance in our clearing account? Did I do something wrong?

 

Thank you so much in advance!

1 reply

May 13, 2022

Hi FitzYIC,

 

Welcome to the Community. It;s essential that you correctly record payments of employees contributions to ensure that your books are up to date. QuickBooks Online is a flexible program that simplifies the way you manage your books. I'd be glad to point you in the right direction to get the support you need to record the employee contributions.

 

I'd encourage you to consult an accountant as they have the knowledge to point you in the right direction on how to record and categorize payments of employees contributions in order to keep your books balanced. If you don't have an accountant, you can find one near you by clicking on My Accountant on the left navigation menu> and then Find a pro to help.

 

Let me know if you have any questions, I'll be happy to help.