Ask Experts Questions for FREE Help!
Ask

401k deduction / employer match/ income statement

Asked Dec 19, 2006, 02:45 PM — 1 Answer
I was ask how does this effect the income statement. "I paid the employer match of 401k from the 401k withheld instead of the accrued profit sharing account. " I thought when we made the adjustment that would bring the income statement down by the amount of the match but I was told it didn't effect the income statement. WHO IS RIGHT?!?!?!



Thanks
Darlene
Search this Thread
Share |
1 Answer
CaptainForest's Avatar
CaptainForest Posts: 3,684, Reputation: 2080
Ultra Member
  
#2

Dec 19, 2006, 03:54 PM
Whoever told you it didn't effect the income statement was correct.

From my understanding, 401K withheld is a tax liability withheld on behalf of the employees to the government.

And as you know, liabilities never touch the income statement.
Helpful
Not your question? Ask your question View similar questions
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Add your answer here.

Remove Text Formatting
 

Undo
Redo
  
Decrease Size
Increase Size
Bold
Italic
Underline
Align Left
Align Center
Align Right
Ordered List
Unordered List
Decrease Indent
Increase Indent
Insert Email Link
Wrap [QUOTE] tags around selected text
Wrap [CODE] tags around selected text
Wrap [HTML] tags around selected text
Wrap [PHP] tags around selected text
Wrap [YOUTUBE] tags around selected text
Notification Type:



Check out some similar questions!

Comparative Income Statement [ 1 Answers ]

Prepare a comparative income statement for Walmart, Inc., for the years ended December 31, 2006,. Be sure to include figures for gross margin, operating income, income before taxes, net income, and earnings per share. Sales $300,000 Utilities expenses 15,000 Employee salaries 115,000...

Income statement [ 3 Answers ]

What accounts belong in an income statement?

View more Accounting questions Search