How do I set up paying our companys 3% Simple IRA match to pay out monthly and not one big payment at the end of the year?

Thanks for posting your question here, joe86. 

Once you setup your Simple IRA  payroll item, it'll automatically set up your accounts for you. 

Below, are the steps to set up your benefits using the EZ Setup in QuickBooks Desktop: 

1. Hover over Lists and select Payroll Item List in the top menu. 
2. In the lower-left of the Payroll Item List, choose Payroll Item. 
3. Click on New and then go to EZ Setup. 
4. Pick Next and follow the instructions. 
5. Once you've created that payroll item, edit the payroll item to make sure all necessary vendor information has been entered. 

For more detailed instructions with setting up a payroll item in QuickBooks Desktop, you can refer back to this article: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.). 

Let me know if the steps above do the trick. If you have any more questions, I'm always here to help. 

specifically what are the settings in the Simple IRA Co. Match payroll item?

Thanks,

Susan

Welcome to the thread, SusieQStL.

Let me show you how to set up Simple IRA in QuickBooks Desktop in a few clicks. Here's how:

1. Go to the Lists menu at the top.
2. Select the Payroll Item List.
3. Tap on the Payroll Item drop-down arrow, then click New.
4. Pick Custom Setup (allows editing of all settings; recommended for expert users) radio button and hit on Next.
5. Select Deduction and select Next.
6. Enter the name of the payroll item and click Next.
7. Select an agency, enter the number that identifies you, and click Next.
8. Choose a tax tracking type and click on Next until you reach the Calculate based on quantity window.
9. Select Neither and click Next.
10. Enter the percentage in the Default rate and limit window and click on Finish.

When selecting the Tax tracking type, this is how your Simple IRA Co. Match is reported:

• 941 or 944: Not included in wages in lines 2, 5a, 5c or lines 1, 4a, 4c.
• 940: Increases wages in line 3, increases exempt payments in line 4, and box 4c is checked.
• W-2: Not included in wages boxes 1,3 5, and Retirement Plan is checked in box 13.

If None is selected, the Simple IRA Co. Match isn't reported to any forms. Thus, I recommend consulting your accountant to verify if it's the right thing to do. 

As a reference, you can refer to this article for further guidance: Set up or change a retirement plan.

If you have further questions, feel free to leave a comment below. I'll be around to help. Have a good one.

We don't use QBO payroll.  Is the setup the same as what it would be PR taxes payable?

Thanks for joining in on this thread, IMCB.

If you're using the desktop version of QuickBooks, then the steps shared above is how you can set up the retirement plan. 

As for the taxability, both programs are the same. You can check out these articles for more details:

• Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).
• Add or change pay types

In case you want to know how the deduction is set up for the online version of QuickBooks, you can open this link for the steps: Retirement plan deductions/contributions.

Please let me know if you have any follow-up questions about the retirement plan or other payroll concerns. I'm here to help you out. Take care and stay safe!

Thank you for posting here in the Community, @Stillmank.

I'll be glad to share with you the steps to set up a Simple IRA contribution each month. I'll make sure you'll be able to get the 3% each month for each employee.

Here's how:

1. Log in to QuickBooks Desktop, click Employees and select Employee Center.
2. Double-click the employee.
3. Select the Payroll Info tab.
4. In the Additions, Deductions, and Company Contributions section, click under Item Name to add an item.
5. Then select add new.
6. Put a checkmark on the  Employee is covered by a qualified pension plan if the employee participates in a 401(k), 403(b), 408(k)(6) SEP, or SIMPLE IRA plan.
7. Click OK.

You can also check these articles to know more about setting up payroll items for retirement:

•  Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.)
• Set up and pay scheduled or custom (unscheduled) liabilities

We'll be happy to help you in any way here in the Community. You can leave a comment below if I can be of more help with setting up payroll items.

Hi,

When does the Employer Contribution get applied? Does it have to be applied every pay period at the same time the Employee Salary Deferral is applied or it gets applied at the end of the year otherwise how do you calculate the employee's 3% or less?

Hi LBCosmetic!

Thanks for joining this thread. Allow me to assist you with the Simple IRA contribution.

QuickBooks Desktop Payroll will calculate the contribution every time you run payroll. You also have an option to add a default rate and limit. Follow these steps:

1. Go to the Lists menu and select Payroll Item List.
2. At the lower left of the Payroll Item List, click the Payroll Item button, then New.
3. Select Custom Setup > Next > Company Contribution > Next.
4. Follow the on-screen steps.

You can also check this article for more details: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

I also included this link on how set up and pay payroll liabilities: Set up and pay scheduled or custom (unscheduled) liabilities.

Post again here if you need more help with payroll. Take care!

Thank you for these detailed instructions. How do you set up the over 50 catch-up amount? I would think it would be a separate line item

Good morning, @dlr215.

Thanks for taking the time to share your concerns. I hope you're having a great day so far. 

By Oct. 31, 2024, all new customers who sign up for QuickBooks Online Payroll with automated taxes on and tax setup completed, will have payroll taxes taken out at the time of running payroll or changes in liabilities.

Existing customers who have this setting turned on will receive this update on either October 1, 2024, or January 1, 2025. They will start receiving notifications of the change beginning 90 days prior to the update.

For customers getting the update on Oct. 1, our team will make a one-time withdrawal for any unpaid federal unemployment (FUTA) taxes to date. Our Team will send your clients an email and notification reminders beforehand. Other taxes for periods ending prior to Oct. 1 will be withdrawn on their deadlines as they previously had been.

With that said, the 50 catch-up amount you've mentioned will be automatically withdrawn.  For more information, check out Upcoming changes to payroll and auto tax: FAQ.

Don't hesitate to let me know if you have any additional questions or concerns. Have a good one! 

That was not my question. My question is in regards to a SIMPLE IRA contribution

Hey there, @dlr215. 

Thanks for coming back and giving some additional information. 

To ensure accurate deductions, you'll need to set up a new payroll item for the Simple IRA Catch-up Contribution for employees who are over fifty. Please see the steps below:

1. Navigate to the Lists menu and click on Payroll Item List.
2. From the Payroll Item dropdown, choose New.
3. Opt for Custom Setup, and then click on Next.
4. Select either Deduction or Company Contribution, then Next.
5. Enter the name of the deduction or company matching item, and then choose Next.
6. Select the name of your retirement plan provider or add it, and input the account number. In the Liability account field, choose the account that tracks the deduction or contribution to be paid. Then click Next.
7. In the Tax Tracking Type window, pick the applicable retirement plan. Select Next twice.
8. Under Calculate based on quantity, select Neither and select Next.
9. Keep the Default Rate and Limit fields empty. You can add the rate and limit when you add the item to the employee profile.
10. Select Finish.
     

For more detailed steps, feel free to scan this article: Set up or change a retirement plan.

We're just one post away if you have follow-up questions Simple IRA Catch Up Contributions. You can click the reply button below to enter your queries.