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Active Member

IRA contributions

Does QuickBooks Payroll calculate income taxes on IRA contributions?

QuickBooks Team

Re: IRA contributions

Greetings, GK1968.


 I'm here to provide some insight on your question regarding Simple IRA contributions.


As per instructions from IRS, QuickBooks recognizes Simple IRA as tax-deferred. This means that deducted amounts are exempt from federal and state income tax withholding when processed through payroll.


However, they're still subject to Social Security and Medicare taxes. Amounts withdrawn from this plan, after retirement, are subject to income taxes. Detailed information on this plan is available on the Types of Retirement Plans page on the IRS website.


I hope this response finds you with a smile. Please know that I'm always here to provide help and answer any questions that you may have about IRA contributions and how QuickBooks handles it. 

Established Member

Re: IRA contributions

I have an employee who contributes a 15 percent into their Simple IRA. This payroll I just ran (3rd payroll of 2019) changed the amount on the same salary as the rest of the year and only calculated approximately 14.78%.

Has anyone seen this or know why this happened?

QuickBooks Team

Re: IRA contributions

Thanks for posting here in the Community, @Manyhats.


Allow me to share some insights about this Simple IRA concern. 


We currently have an ongoing issue wherein Simple IRA contributions are not calculating correctly when payroll. Our developers are not diligently working to get this fix in a timely manner. 


For now, I'd suggest reaching out to our Customer Care Team so you'll be added to the list of the affected users. This way you'll be able to receive email notifications about the updates of the issue. 


You can reach them through the contact information through this link: Contact the QuickBooks Online Customer Support team.


Thank you for your patience while this was being worked on. Please know that the Community has your back should you have any questions.