Where are employee contributions to a defined benefit pension plan entered?
In contributory defined benefit pension plans, the employee is required to make regular contributions to the pension fund. These contributions can be entered as follows: • Go to the Expenses category – Standard tab. • Click Insert, and then select Periodic – RPP contrib. – defined benefit. The Periodic Expense dialog box opens. • Enter the applicable details to define the contribution expense. • Click OK to close the Periodic Expense dialog box. The expense will be included in the clients’ cash flow analysis. The contributions will be considered a deduction for income-tax purposes.
