We would like to check what's causing this incorrect calculation for your Simple IRA deduction, AttComm.
You can reach out to our Customer Care Team by following these steps:
If you have other questions or concerns about QuickBooks Online Payroll, feel free to add it here. Thanks.
I have also tried the private browser, as well as clearing my cache and it is still calculating incorrectly. I have called customer service on several occasions and all I got for the hours spent on the phone was that I could manually calculate until it is corrected. It is not only incorrectly calculating employee deduction, but also the company deduction. I do not believe it is the set up as nothing has changed on our end for the last several years. This problem started in February 2019, was resolved for a few payrolls and then started up again. It is extremely frustrating the lack of progress made on this by Quickbooks given that it is now November and the problem started in February. We continue to pay a monthly payroll fee, as well as our annual subscription, and then on top of that our annual subscription increased by $100.00.
For now, our engineers gave an update to manually edit the check to make the Company Contribution match the deduction. For the employee's side, I suggest contacting us again so we can do a payroll correction. Please follow the steps given by my colleague above.
We can also open a new case for the Simple IRA Deductions and Contributions, for both company and employee, aren't calculating correctly.
I appreciate your time and efforts to get this sorted.
I find the lack of urgency in this issue for a company your size appalling!
The same person who changed the programming to cause this error should easily be able to fix this problem.
We are coming up on year end and to make sure employees are whole with deductions and matches MANUALLY is something no one should have to do on your software.
Hello there, frustrated user2.
I know you want to get this resolved as quickly as possible so you can get back to business and avoid workarounds-like manual adding of amounts.
If you assign a Simple IRA deduction and company contribution to an employee and then choose the percentage calculation method, then assign an equal value to both the deduction and company contribution the amounts on the paycheck should match.
However, if you deduct the Section 125 Cafeteria plan, as per IRS, the amount is deducted from the employee's gross pay before you calculate the Simple IRA contribution. Thus, the company contribution and employee deduction amounts won't match.
If the compensation doesn’t include amounts deferred under a Section 125 Cafeteria plan, I'd still recommend contacting our Payroll Care Support by following the steps provided by RenjolynC.
They have the tools capable of pulling up your account in a secure environment, which we are unable to do so here in the Community for security reasons. From there, our representative can look for the root cause of the payroll deduction miscalculation and correct the amount.
For more reference about retirement plans that Intuit supports, as well as how to set them up, assign and remove them, you may refer to this link: Retirement plan deductions/contributions.
Drop me a comment below if you have any other questions. I'll be happy to help you out.
This issue is still not resolved. How could such a simple problem take nearly a year and counting to resolve. Please solve this once and for all.
I just switched to the online payroll and am having this same problem BUT I note in your comment here you wrote that "as per IRS, the amount is deducted from the employee's gross pay before you calculate the Simple IRA contribution". Could you please provide documentation of that because I have been calculating the employee contribution on Gross pay FOREVER and have never seen anything that indicates the calculation should be after pre-tax deductions.
Good Evening, @Sricig.
Thank you for your feedback. I'm happy to help with the payroll deduction calculation error that you're receiving.
After reviewing this thread, the information provided was correct. If you assign a Simple IRA deduction, plus the company contribution, then choose calculation and also assign an equal value to both the deduction and the contribution, the amounts on the paycheck will match.
I'm going to attach a link below with some additional information explaining why the payroll deduction calculation is after pretax deductions and also a little more insight on the pay types and deductions
Pay types and deductions explained:
If you have any more questions or concerns, I'm always a comment away. Have a great weekend!
We are a huge fan of QBO for our bookkeeping needs and have over 100 clients on QBO however if this can not be corrected and QBO can not follow the basic rules of the internal revenue code we have obviously directed our clients to a sub par solution for payroll and will redirect them to a solution that can handle a simple retirement solution. I would greatly appreciate a prompt response to this resolution of the above problem. I would also like to make it be known that we are part of a CPA group (rootworks) across the nation that also may use your product and we will make it known that the payroll solution doesn't meat the needs of our small business clients. I look forward to your prompt solution.
All the best,
Hi beth burkeen,
We recognize how you want QuickBooks to work perfectly with your payroll. The Simple IRA plans are tax-deferred. This means that deducted amounts are exempt from federal and state income tax withholding when processed through payroll.
However, they're still subject to social security and Medicare taxes. Amounts withdrawn from these plans after retirement are subject to income taxes. You can manually edit the check to make the credit card match the deduction or use the amount method.
But if you're still getting calculation error, I suggest reaching out to our support team to investigate this further. They have the tools to pull up your account securely which we're unable to do it here in the Community.
Here's how to reach them:
You can check out this article for more explanation about retirement plan: Retirement Plan Deductions/ Contributions.
Feel free to leave a reply below if you need further assistance. I'm always right to help.