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how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

 
Best answer a month ago

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QuickBooks Team

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

Welcome to the Community, johnfilas.

 

Thank you for choosing QuickBooks Desktop as your partner accounting and tracking your payroll. I'm here to help set up a SEP IRA.

 

In a few easy steps, you can set up a SEP IRA. This item is used either for employee contribution to 408(k)(6) SEP or company contribution to an employee's 408(k)(6) retirement plans.

 

To do this task, please follow these steps:

  1. Go to Lists and choose Payroll Item List.
  2. Click on the Payroll Item drop down and select New.
  3. Choose Custom Setup (allows editing of all settings; recommended for expert users) and click on Next.
  4. Choose Deduction if this item will be used for employee contribution, enter a name, and select the name of the agency to which liability is paid. Then, choose 408(k)(6) SEP in the Tax tracking type window. 
  5. Choose Company Contribution if this item will be used for company, enter a name, select the name of the agency to which liability is paid. Then, choose 408(k)(6) Co. Match in the Tax tracking type window. 
  6. Select your option in the Calculate based on quantity window and click on Next.
  7. Set your default rate and limit and click on Finish.

I've attached some screenshots below to help you with the process.

 

1.PNG

 

2.PNG

 

3.PNG

 

4.PNG

 

5.PNG

 

6.PNG

 

As a reference, you can refer to this article for further guidance: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

 

This should point you in the right direction. Let me know if you have further questions. I'm always here to help.

QuickBooks Team

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

Hello, johnfilas.

 

Thanks for following all the steps provided by my colleagues and for sharing the results you’re getting. 


There’s a possibility that there are no transactions recorded in QuickBooks under the payroll item you’ve created. That’s why it’s not showing on the pop up window. To check:

  1. Go to List at the top and select Payroll item List. 
  2. Locate and right-click the payroll item involved (SEP IRS COMPANY).
  3. Select QuickReport. 

If there are no transactions showing on the report, then you’ll need to record them through Adjusting Payroll Liabilities. Here’s how:

  1. Go to Employees>Payroll Center. 
  2. Go to Pay Liabilities tab. 
  3. Click the Adjust Payroll Liabilities link at the bottom. 
  4. Select Employee for Adjustment is for. 
  5. Choose the employee involve and select SEP IRA under ITEM NAME.
  6. Enter amount and other necessary information. 
  7. Click OK. 

Once done, follow the steps provided by colleague about creating a check to your SEP IRA provider. 


Please continue to visit us here if you need anything else. 
 

Frequent Explorer *

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

Thank you! It works now.

10 Comments
QuickBooks Team

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

Welcome to the Community, johnfilas.

 

Thank you for choosing QuickBooks Desktop as your partner accounting and tracking your payroll. I'm here to help set up a SEP IRA.

 

In a few easy steps, you can set up a SEP IRA. This item is used either for employee contribution to 408(k)(6) SEP or company contribution to an employee's 408(k)(6) retirement plans.

 

To do this task, please follow these steps:

  1. Go to Lists and choose Payroll Item List.
  2. Click on the Payroll Item drop down and select New.
  3. Choose Custom Setup (allows editing of all settings; recommended for expert users) and click on Next.
  4. Choose Deduction if this item will be used for employee contribution, enter a name, and select the name of the agency to which liability is paid. Then, choose 408(k)(6) SEP in the Tax tracking type window. 
  5. Choose Company Contribution if this item will be used for company, enter a name, select the name of the agency to which liability is paid. Then, choose 408(k)(6) Co. Match in the Tax tracking type window. 
  6. Select your option in the Calculate based on quantity window and click on Next.
  7. Set your default rate and limit and click on Finish.

I've attached some screenshots below to help you with the process.

 

1.PNG

 

2.PNG

 

3.PNG

 

4.PNG

 

5.PNG

 

6.PNG

 

As a reference, you can refer to this article for further guidance: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

 

This should point you in the right direction. Let me know if you have further questions. I'm always here to help.

Frequent Explorer *

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

How to create a check to provider of SEP i.e. Edward Jons 

QuickBooks Team

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

It's good to see you again, johnfilas.

 

Let me help create a check to your SEP IRA provider in QuickBooks Desktop.

 

After creating the employee's paycheck, QuickBooks allows you to record a check through the Pay Liabilities window. To do so, you can follow these steps:

  1. Go to Employees and choose Payroll Center.
  2. Select the Pay Liabilities tab.
  3. In the Other Activities section, click on the Create Custom Payments link.
  4. Set the date range and click on OK.
  5. Mark to select the SEP IRA check and click on the Create button.
  6. Then, you can either print the check or click on Save & Close.

For your visual reference, please see attached screenshots.

 

p1.PNG

 

p2.PNG

 

p3.PNG

 

p4.PNG

 

p5.PNG

 

You can also check this article for more information: Set up and pay scheduled or custom (unscheduled) liabilities.

 

From there, you'll be able to create a check for the SEP IRA provider.

 

Please let me know how things go once you've tried these steps. I'll be here to keep helping. Take care.

Frequent Explorer *

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

Thank you for your help! All worked correctly until after hitting ok at step 6. The SEP IRA Employer does not show up in the window that pops up so I am unable to create the check. It does, however, show in the 'payroll items' window. What could be the cause of this and how do I fix it? 

QuickBooks Team

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

Thanks for getting back to us, johnfilas.

 

I appreciate sharing the result of the solution provided by my colleague. Allow me to step in for a moment and help ensure you can create a liability check for the mentioned liability above.


Just to clarify, did you also select the SEP IRA Employer? While waiting for the details, you’ll have to mark the liabilities that need to be paid when creating custom payments.

 

To accomplish this, you'll have to open the Create Custom Payments screen again and mark the payroll item. You can follow the steps provided by @JaneD.


This way, the SEP IRA company contribution, and employer portion will show up on the liability check. I'm attaching screenshots for visual reference.

sep1.pngsep2.pngThis information should help you move forward. Let me know what the results are after trying this on your end. I’ll be right here to assist further.

 

Frequent Explorer *

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

In step 7 i do not have SEP Ira Employer listed.so I can't create a check. I want to do only employer contribution for employee.

QuickBooks Team

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

Hello again, johnfilas.


I can help clarify why you’re unable to see the SEP IRA Employer in the Custom Payments screen.


This can happen when the account used to track the payroll item is not a Payroll liability. You’ll have to review the setup and update the information to resolve this issue.  


Here’s how:

 

  1. Click on the Lists menu bar, then select the Payroll Item List.
  2. In the Item Name column, right-click your mouse beside SEP IRA Employer.
    sep3.png
  3. Select  Edit Payroll Item, and click on Next twice.
    sep4.png
  4. In the Agency for employee-paid liability window, go to the Liability account (employee-paid) section and check the account.
    sep5.png
  5. If it’s incorrect, click on the drop-down and change the existing account to Payroll liabilities.
  6. Click on Next five times until you reach the Finish button.


After completing the process, you’ll see another window asking how you want QuickBooks to update the transactions. Make sure to read the options and select the correct one.
sep6.png

With these steps, you should now see the deduction item and will be able to create a liability check.


Keep me posted on how these troubleshooting steps work for you. I want to make sure everything is taken care of and you're all set with this concern.

 

Frequent Explorer *

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

Hi,

 

Thanks again for the reply. I've followed all steps listed and I'm still having the same problem. I've described/illustrated the steps I went through below. 

 

1. I set up the SEP IRA in the payroll items.

quickbooks1.jpg2. These are the steps I followed for setup. quickbooks2.jpg

 

3. When I try to create a check from payroll liabilities, the SEP IRA does not show up so the check can't be created. quickbooks3.jpg

Is there a misstep on my part? Is there anything else I can do to fix this?

 

Thanks!

 

QuickBooks Team

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

Hello, johnfilas.

 

Thanks for following all the steps provided by my colleagues and for sharing the results you’re getting. 


There’s a possibility that there are no transactions recorded in QuickBooks under the payroll item you’ve created. That’s why it’s not showing on the pop up window. To check:

  1. Go to List at the top and select Payroll item List. 
  2. Locate and right-click the payroll item involved (SEP IRS COMPANY).
  3. Select QuickReport. 

If there are no transactions showing on the report, then you’ll need to record them through Adjusting Payroll Liabilities. Here’s how:

  1. Go to Employees>Payroll Center. 
  2. Go to Pay Liabilities tab. 
  3. Click the Adjust Payroll Liabilities link at the bottom. 
  4. Select Employee for Adjustment is for. 
  5. Choose the employee involve and select SEP IRA under ITEM NAME.
  6. Enter amount and other necessary information. 
  7. Click OK. 

Once done, follow the steps provided by colleague about creating a check to your SEP IRA provider. 


Please continue to visit us here if you need anything else. 
 

Frequent Explorer *

Re: how to set up SEP Ira in QB pro desktop payroll enhanced. Just start up

Thank you! It works now.