Including cash tips in the employees simple ira deduction calculation
Thanks for reaching out to the Community, DaltonT.
You can include any payroll items in an employee's Simple IRA deduction.
Here's how: 1. From your top menu bar, go to Lists, Payroll Item List, Payroll Item, New, Custom Setup, then Next. 2. Choose Deduction. 3. Enter a name for the item in your Enter name for deduction field. 4. In your Liability account drop-down menu, pick a liability account that will be used for tracking purposes. 5. Input the appropriate tax tracking-type classification that matches your plan type. 6. Put a checkmark next to any item(s) in your Payroll Item column that you'd like to be calculated after this deduction is taken. 7. On the Calculate Based on Quantity screen, choose Neither. 8. If a Gross vs net window displays, you'll need to specify whether the deduction is gross (percentage of an employee's gross earnings) or net (fixed dollar amount). If your calculation varies from one employee to another, you'll need to set up separate items. 9. When the same deduction rate/amount applies to all or most employees, enter it into the field at the top of the Limit Type window. Your annual deduction limit (if any) should be entered in the lower area, only if it's limit is the same for all or most employees. If the deduction amount is different for some workers, you can access their profiles and edit their amounts. Select Finish when you're done setting up your retirement plan deduction.