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R
Ramzizi
October 20, 2024
Question

How do I record a solo 401k employee contribution?

  • October 20, 2024
  • 1 reply
  • 0 views

I have a one member S corp. My payroll provider is Gusto - they don't link directly to my 401k so what I had them do is defer my solo 401k contribution account from my paycheck. Then I make an employee contribution directly from my bank to my 401k. 

 

How do I properly categorize the bank to 401k transaction in quickbooks online? Keep in mind Gusto will handle reporting the deferment on the paycheck. 

1 reply

T
Teri11_2
December 28, 2024

I am also single owner/employee of S-Corp and use Gusto and contribute to retirement plan.  No need to "defer". Gusto computes amounts and you record liability on books due to be paid to 401 Admin. Then when you record entry to pay cash to 401k admin, do JE to relieve that liability so that 401k liability account zeroes out. 

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