IRA Contributions SIMPLE IRA

Thanks for reaching out to the Community, thetaxlady.

QuickBooks is a diary of your business that keeps track of what’s happening to the transactions. The process to track the contribution in your company file depends on how the payroll service recorded it on their end.

To ensure the information in the company file is correct, I suggest contacting your payroll processor for further information. Check with them how they account for the contribution, so we can guide you on how to input it in QuickBooks.

You can bookmark the following article for future reference. It contains resources that will help you efficiently perform any processes in QuickBooks. It includes topics for payroll, banking activities, inventory, customer and supplier transactions, etc: Self-help guide.

Feel free to visit the Community again if you have additional questions or concerns. I’ll be right here to answer them for you. Wishing your business continued success.

I have contacted the payroll provider and they took the employee contribution and the company match directly out of the business  bank account and deposited the funds into the IRA account that was set up for him bypassing the pretax deduction from salary and employer liability typically found on the payroll detail report.

They fixed it for 2021. Thank the maker.

Do you know how they fixed it and what it entailed?

Hi there, CJatThePearl.

Yes, there is a process on how we can add the simple IRA in QuickBooks.

A simple IRA or 401 (k) plan is a tax retirement account offered by the employer to their employee. It is a salary reduction contribution made to a retirement savings plan. The employee can get that fund after their retirement.

Here's how to set up 401(k)/ Simple IRA:
 

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 contact our payroll support team, so we can help you how to set up the payroll items in QuickBooks.

I've also included these articles for additional help:

• Payroll items on paycheck are not calculating or are calculating incorrectly
• Set up and pay scheduled or custom (unscheduled) liabilities

Please let us know if you have questions about adding payroll items. We're always here to help. 

 

Is there an option to add SIMPLE IRA contribution in Quickbooks  self-employed?

Welcome to the Community forum, @Debbie2022.

QuickBooks Self-Employed (QBSE) doesn't support recording SEP contributions since plan contributions for a self-employed individual are deducted on Form 1040 and not on Schedule C. Right now, you can record the amount in the system and mark it as Personal. Then, once data is exported in TurboTax, record SEP contribution from there.

With the suggested steps, I highly recommend reaching out to your accountant for other ways on how to do the recording. This is also to ensure you have the correct lines. If you don't have one, utilize our Find an Accountant tool to find one near your location. 

Take a look at this IRS article for more information: Self-Employed Individuals – Calculating Your Retirement-Plan Contribution and Deduction.

You can also visit our Schedule C and expense categories page to help you in managing your QuickBooks Self Employed account: This page includes steps on how to record your self-employed income and expenses, and prepare your Schedule C. 

Please know that you can always post here if you have a further concern about SEP IRA contributions in QuickBooks. I'm always here to help. Have a good one.

Doesnt appear the quesiton ever got answered.   its frustrating as it seems QB's want to try and answer the question in a way assuming/pushing the use of QBs to handle payroll.  This i not a payroll item, its a neeed entry guidance for the banking section .   I had put Charles Schwab as Vendor/customer, set up a split to show deductions from my banking account directly for the transfers to their simple ira's, but then when i make my contribution again directly from banking (not payroll), I also do not know how to make this categorized/described differently.  This is in order to reconcile the bank account month to month, and so at the end of the year, we can run reports and confirm what an employee saved paycheck to paycheck,  and what the company matched one time per year

Your efforts to connect with the Community are much appreciated. I'd be happy to help you clear things up.

I understand how time-consuming it is to experience challenges on your QuickBooks Desktop (QBDT). 

You appear to be attempting to split a partially recognized transaction. I suggest you ignore them in your QBDT. Then create a journal entry to properly categorize and organize the amount you are trying to split. Please consult your accountant for the account or category to use.

To ignore the transactions:

1. Go to the Banking menu.
2. Hover over Bank Feeds and select Bank Feeds Center.
3. From the Partially Recognized tab, choose a transaction.
4. Select Ignore. This deletes the transaction from your list as a result. When you have several transactions to ignore, pick them all before clicking Ignore transactions from the Batch Actions dropdown menu.

To create a journal entry:

1. Select Make General Journal Entries from the Company menu.
2. Fill out the fields to create your journal entry. Make sure your debits and credits balance.
3. Hit Save or Save & Close.

The following articles will assist you in managing transactions and accounts in QBDT:

• Add and match Bank Feed transactions in QuickBooks Desktop
• Create a journal entry in QuickBooks Desktop for Windows or Mac
• Reconcile an account in QuickBooks Desktop

We value your patience and understanding. If you have any additional questions about QuickBooks, just click the Reply button or post in the Community again. Keep safe!