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Paying 'current liabilities'

Our company is an LLC with 3 members, 20 employees and a 401K plan with matching contributions.

Our payroll service sends a report with the employee 401K deductions and the safe harbor match for the employees. I edit the data to add the member deductions and match and then submit the information to the 401K plan for deduction from our accounts.

I set up a 'current liabilities' account with two sub-accounts for 'payroll deductions' and 'company match'. I've tried to enter the data from the payroll services report as a BILL for the 401K plan, to be paid each time I upload the contribution data.

Problem is, the Bill shows as a DECREASE in the liabilities account, and when I Pay the bill, the vendor account is zeroed, but the liabilities account is unchanged.

I've thought of using journal entries, but I am not sure what the 'balancing' account would be (payroll liabilities?). And, I need to be able to have the amount show up as an EFT transfer from my checking account.

Surely setting up 401K entries in QuickBooks is a common enough task. I cannot, however, find any information in the helpfile.

Any advice would be most welcome.

Reply to
hatesspam
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Don't just think about journal enties, learn to live them and love them.

Reply to
Allan Martin

So, journal entries is the way to go? Can you give me an example?

Reply to
hatesspam

Call your accountant and ask them how to journalize your payroll from the reports given to you by your payroll service.

Reply to
Allan Martin

Allan, Allan, Allan

You of all folks should know that there are many ways to skin this cat. Calling my accountant for what should be a trivial data entry procedure - while an option - is not the option I want to explore first.

My MO for research (for MOST issues - business, personal, medical, etc. ) is... examine any helpfiles (or, RTFM if you prefer) Then search the appropriate support site. Then Google the web. Then post on appropriate message boards/forums....

If I'm not satisfied after the above steps, then I consider placing a call to a paid professional. I not only value my $, I also value the time and expertise of the folks I pay for advice (which, IMO, includes not bothering them over trivial matters).

Seems you've forgotten recently how to word an appropriate helpful newsgroup reply. Since you've previously offered sage advice, I am sure you can regain that (currently) lost ability with a little practice.

Why not look at the responses to my question that were posted on the QB Community forums for a start?

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Reply to
hatesspam

Hatespam-I think what you are failing to understand, is this is not a QB question, but an accounting "101" question! How are you booking your payroll now? N Owen

Reply to
N Owen

I went from using QB DIY payroll to using a payroll service. The payroll service supplies me with reports, and the appropriate journal entries for most items. The 401K plan, however, they are not connected with. While the payroll service calculates the amounts to be withdrawn and the amounts of the company match, the upload to the 401K plan provider is done by me.

And I would be the first to agree that the question was 'accounting 101'. The basic nature of the question was the reason I posted to the newsgroup and forums in the first place! Frankly, I fail to understand why such a common issue isn't dealt with in QB help, or on the QB support site (other than the stubborn obstinacy of Intuit in no longer giving users any help in setting up payroll outside of subscribing to their 'service'). I found it even more surprising that such a basic question had no response from within this ng.

Reply to
hatesspam

You are dead wrong. I'm a CPA and consider the advice given prudent. Without seeing the actual payroll reports as well as your chart of accounts and the reporting requirements by your taxing authorities, answers would only be best guesses.

Reply to
Allan Martin

OK- I just went back & re-read your orig post. When you enter your p/r JE are you posting the employee deducts as credit to p/r liab? Also, the p/r JE should have the co match part as credit to p/r liab & as a debit to the co expense. You must be coding the bill incorrectly. It will reduce your p/r liability (debit) & increase your Accounts payable liability (credit). When you write the check, it will reduct your AP liability (debit) & reduce your bank acct (credit). If you enter the liability check in as a bill, then just select it to pay by itself & instead of a check # use EFT. N Owen

Reply to
N Owen

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