Some employers offer 401k plans, in which employees can put a portion of each paycheck aside for retirement. Employees cannot withdraw retirement funds until they turn 59 1/2 without incurring harsh tax penalties. The employer can set up a safe harbor plan where the business contributes the same amount to each employee's retirement fund as the employee does. QuickBooks keeps track of employee and employer contributions and generates accurate payroll.
Enable "Inuit Benefits and Services" so that you can access the tools you need to set up company matching. Click on "Edit," then "Preferences." Choose "Payroll and Employees" and click the "Company Preferences Tab." Click "Enable Syncing for Inuit Benefits and Services."
Set up retirement benefits in QuickBooks. Choose "Employee" and then "Payroll Setup" from the menu on the top of the screen. Choose "Company Setup," "Employment Benefits" and "Retirement Benefits."
Click "Next" on the payroll wizard or click "Add New" if you have set up retirement benefits before.
Click on the box next to "401k" and the box next to "Company Matching" to set up your 401k and safe harbor plans.
Input the name of the 401k. Typically, this is your company name followed by "401k," such as "My Small Business 401k." Type "401k" in the account number field.
Choose "Weekly" as the pay frequency and click "Finish." QuickBooks will automatically make deposits into your 401k when you do payroll.