QuickBooks Online 2019-Retirement Plans QuickBooks

QuickBooks Online 2019-Retirement Plans QuickBooks

In this presentation we will take a look at retirement plans options within quickbooks online for more accounting information and accounting courses visit our website at accounting instruction dot info here we are in our practice payroll file you can follow along in your own business file or take a look at the free test drive file that is provided by quickbooks

And intuit we’re gonna go down to the workers tab on the left side we’re in the employees up top the employees tab you’ll note that we have our three employees we’re now going to consider the options for setting up a 401k plan just from a logistic standpoint where would you go to set up the different types of formats of a 401k plan once we have the payroll set

Up we can do so by going into the the employee options so we’re going to go down here into a particular employee option we’ll take a look at judy jones so if we were to set up judy jones we can go into the edit within the edit tab we’re gonna scroll down to where we see these numbers we got one two three four and five we are considering number three this is where

The deductions are you’ll note we have this option set up already in this particular case to set that option up we would go to add a new deduction so we’re going to add a new deduction if we select the items up top is it a deduction or a garnishment we’re gonna say it’s a deduction contribution then we’ll have our options here and within these options we’re gonna

Say it’s a new deduction contribution these are items we have set up already within this file if you hadn’t set up any other items then you’d have less options here and we’re gonna set up a new deduction and then we have the deduction contribution items is it an hsa a retirement plan other deductions health or flexible say we’re gonna have the retirement plan so

We’re gonna consider the retirement plan now the 401k isn’t the only retirement plan of course you want to think about the different types of retirement plans what would suit your business best to set them up logistically within quickbooks then we would i detest these items and these are some items that the retirement plan the format of the retirement plan could

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Take so a 401k 401k catch-up simple 401k the simple foreign ketchup the 403b and so you could take a look at all these options we have basically much of the retirement plan options are covered within quickbooks and you have to basically determine which retirement plan would be best for you and then choose the appropriate option here logistically we put in the

Option of the 401k just as a familiar option that most people have the most understanding with not necessarily the best option for say a small business it has pros and cons so this is what this is just looking into the logistics of how to set that information up so we’re gonna go ahead and say close this back out and you’ll note once again if i go back into it we

Have the 401k item here once you’ve set that up quickbooks will set up which accounts to be affected as you process the payroll as we go so quickbooks will then fill out that information for us if i take a look at this item open up this 401k note this 401k has an employee deduction which we put in as a dollar amount as opposed to gross pay and it has an employer

Contribution again these items will differ depending on our plan this is all the data that we need within the system and then quickbooks will process this information once we process the payroll quickbooks will pull it out of the paycheck and we could take a look at i’m going to close this back out and we’ll go to the accounting on the left side we’ll go to the

Checking account up top and view the register and then i’m gonna go down to judy jones is check for january here’s judy jones let’s take a look at that check and edit it so we can see the detail of this check and so here’s the gross pay if we scroll back down we can see within the deductions there’s the 401k being removed this is the employee portion and then if

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We scroll down here here’s the employer portion so it’ll it’ll do that for us with that simple data input just put it in the employee and the employer portion by employee it’ll also set up the accounts on the financial statements so if we close this back out will then see on the financial statements if we go to their reports and go to the balance sheet reports

Will sail select the balance sheet report changed the dates up top from oh one oh one one nine to twelve thirty one one nine and we of course will set this up in our practice problem in detail so you can see this step by step set a process of the 401 k and and the effect on the payroll checks as we process them but if we go back up top we’ll see the light the

Liability account for the 401 k this will include both the amount that we pulled out of the employee check that is now owed to the 401 k plan and the amount that we contribute over and above if we have a contribution over and above what was pulled out of the employee pay then we’re also gonna look at the income statement so let’s do that by making a new tab up top

We’re gonna right click on this tab and duplicate it pull the one from the left to the right so the balance sheets on the left new report on the right that reports gonna be a profit and loss we’re gonna go to the reports down below to find it and then we’ll open up the profit and loss changing the dates up top from a 101 one nine to twelve thirty one one nine and

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Run that reports scrolling back down then you’ll note that the other side of that item that came out of the paycheck is going to be part of wages so part of the item for the wool 401 k will be included here this was judy jones is the owner so part of that item was pulled out and is included in the girls pay that we took from the employees to contribute to their

Retirement plan and if we scroll back up and go back to the report we also have part up here the retirement plan up here this isn’t all of the retirement plan if i go back on this just for january we have that one thousand seven fifty that is only the employee portion that’s being paid over and above the gross pay so the employee took some out of their gross pay and

Put it into a retirement plan which they get a tax benefit from and we put more into it over and above their gross pay which they don’t even need to pay taxes on if we can qualify for that which is a huge benefit so this amount of the expense up here isn’t the full contribution it’s just the the amount that the employee or is contributing and the quickbooks sets

All this up just by entering that data into the employee information that sets up these accounts and process it in this format this is basically the default settings of how quickbooks will process this information will see this information step by step this example problem will make it in our example problem so you can see it in detail will analyze each cheque as

It’s being created and what the effect is on the financial statements and the reports for more accounting information and accounting courses visit our website at accounting instruction dot info

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QuickBooks Online 2019-Retirement Plans QuickBooks By Accounting Instruction Help \u0026 How To