Payroll Items are items QuickBooks uses to help run the payroll process and direct the journal entries and accounts that will be effected by processing payroll.
We will add a payroll item related to a 401K plan, a type of retirement plan. Adding the 401K plan payroll item will result in two payroll items, one for the employee portion and one for employer matching.
Once the 401K payroll item is setup we can add the 401K option to employees and process payroll with the 401K.
For more accounting and QuickBooks information see accounting website.