Have you ever faced the challenge of categorizing retirement contributions in QuickBooks? You’ll learn an easy way to simplify this task in this article. By understanding how to categorize retirement contributions, you’ll be able to accurately manage your finances.
Set up retirement contribution accounts in QuickBooks with ease! Two solutions: create a new account or edit an existing one. These accounts in the chart of accounts help you track contributions made by your company and staff. Check out the “Setting Up Retirement Contribution Accounts in QuickBooks” section. There are two sub-sections:
There are two main ways to categorize retirement contributions in QuickBooks. You can either use a liability account or create a subaccount under your business checking account.
A liability account is a way to track money that you owe to someone else. In QuickBooks, you can create a liability account for retirement contributions and use it to record contributions made to retirement plans for your employees.
To create a liability account for retirement contributions in QuickBooks, go to Lists > Chart of Accounts > New Account. Choose the account type “Other Current Liabilities” and name the account something like “Retirement Contributions Payable.” Set up any necessary subaccounts and then save the account.
A subaccount for retirement contributions in QuickBooks is a way to categorize contributions by plan or by employee. For example, you might create subaccounts under your liability account for each retirement plan you offer, or for each employee’s retirement contributions.
To create a subaccount for retirement contributions in QuickBooks, go to your liability account for retirement contributions and click “New Account.” Choose the account type “Other Current Liabilities” and name the account something like “401(k) Plan Contributions Payable.” Set the parent account to your main liability account for retirement contributions and save the account.
To record retirement contributions in QuickBooks, go to Banking > Make Deposits and select the appropriate deposit from your bank account. Assign the deposit to your liability account for retirement contributions and enter the details of the contribution, such as the amount and the employee name or plan name. Then save the deposit.
