"Current tax law permits the S-Corporation to contribute up to $54,000 or 25% of the compensation of the employee"
And you also just stated this: "To date, company contributions are 100%, shareholder-employees contributions 0%."
That is the Employer's Optional amount as expense. I covered this. You can simply put this on an "expense" check, when you pay it out, such as at year end, you determine what is affordable.
"I
think when you mention the "Benefits section" you are talking about QB
DESKTOP payroll, rather than QB ONLINE payroll. I am using QB Online
Essentials payroll. QB Online Essentials does not appear to have a
Benefits section."
This does not need to run through Payroll; it isn't reported on any tax form or payroll form. You should have a Benefits section of Expense. Yes, all payroll provides for Benefit types of activity, but you don't need it, for Employer Optional Amount, unless you want to accrue it through the year, such as Compute on Gross. You know this exists; it is similar to any other Tax type, such as FUTA is employer-paid only, and based on Gross.
"When setting up company contributions in payroll
deductions under payroll settings"
It's not a Deduction
.
Here, read these articles:
https://community.intuit.com/articles/1643602-deductions-and-contributions
https://community.intuit.com/articles/1459298-add-or-edit-a-new-deduction-or-contribution-in-online-...
"So although I would love to do
this through payroll, it does not seem possible until they update
QuickBooks Online Essentials payroll with this option."
Read those articles.
"Also, if
one uses the write check function in QBO, and enter a liability account
below"
If you decide to wait until year end or some Periodic payment, there is no Liability. This is a basic accounting function; you are simply Paying out that expense, now. You don't Pay a liability that you didn't accrue; you Pay it as expense, because you are Right Now paying it. Paying it as liability is an error. And you don't need to accrue it as liability just to turn around and pay it out as liability; why would you make that many entries for one thing to be paid right now?
