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Level 1

IRA Contributions SIMPLE IRA

My client uses an outside payroll service NOT QB payroll.  In April 2020 the company set up an SIMPLE IRA through the payroll service. 


He elected to have his contribution paid directly out of the business checking and NOT through W2 payroll.

I have never dealt with this before so I am a little stumped. The employee contribution and the match came out as 1 debit to the business checking.


Need to know how to properly account for this transaction on QB desktop.

4 Comments 4
QuickBooks Team

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.

Level 1

IRA Contributions SIMPLE IRA

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.

Level 1

IRA Contributions SIMPLE IRA

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

QuickBooks Team

IRA Contributions SIMPLE IRA

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:

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


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