It’s important that all of your financial transactions are logged appropriately within QuickBooks. However, if you have made retirement contributions within your business, it’s important to log those in a specific way.
In today’s episode, Bernard Roesch explains how to log retirement contributions appropriately within QuickBooks. For more information, visit www.MissionBusinessPodcast.com.
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How Are Retirement Contributions Connected To QuickBooks
When you pay employees, but hold money for a retirement contribution, it needs to be tracked within QuickBooks.
- This allows you to send those contributions into the appropriate retirement account, such as a trustee or a bank.
- There are legal requirements for doing this within a business, so it’s important that this information is tracked carefully and is part of your normal accounting process.
How To Manage Retirement Contributions Within QuickBooks
This is the type of process that is best to set up with an experienced payroll provider. Below is the typical process they will do.
- First, QuickBooks needs to be configured to track retirement contributions appropriately.
- This is done by setting up a payroll deduction item configured as a retirement contribution liability.
- This can then be added to the employee’s record so you can run their payroll and log deductions for this item.
- Once this is configured, you can use the process when running payroll.
- You can log the deduction as part of the payroll items in the payroll, which will keep track of how much retirement contributions you are holding.
- Periodically, you can pay these accumulated contributions to the appropriate retirement account and show this within QuickBooks so the balance is accurate.
- Again, this is something that is best set up with an experienced payroll provider, as there are legal ramifications to any errors you may make.
Need Help Configuring Retirement Contributions In QuickBooks
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