I am an S-Corp and the only full time employee. I am setting up a Sep-IRA and need to figure out how to set it up in QBO. After 15 minutes of hold, the support guy did not know how to answer my question and while he was researching, the call got dropped.
My research show there is no way to list it as a retirement account in QBO. They list Simeple IRA and the the others, except Sep-IRA. They do list a SARSEP, but those seem to be obsolete. One post suggsts just creating an Expense called "Employee Expense" which is fine, but what category to put it under is a mystery.
I am sure someone has figured this out...Sep IRAs are very common in the small pusiness world. Help!
Welcome to the community. I saw you posted in another thread about recording SEP-IRA, but I wanted to give you a few more resources.
One of our top contributors, @qbteachmt, clarified specifics about SEP-IRAs and why they need to be set up a certain way. The QuickBooks Resource Center also published a SEP-IRA article that might demystify the categorization question.
Hope this helps!
The contribution made by an S-corp to your SEP IRA can range from 0 - 25% (maximum) of the amount which is there in box 1 of your Form W-2 (total income/salary) for the S-corp.
The contribution is deducted as a business expense on the S-corp's tax return.
Please read the article below for more information on SEP IRA -