2025 Simple Plan Catchup Limits

It’s wonderful to see you making your first post here in the QuickBooks Community, Mari. I understand the significance of accurately managing the Simple IRA catch-up limits in QuickBooks Online Payroll (QBOP). I'll ensure you can effectively account for these limits, so everything is reported correctly on your payroll tax forms.

In QBOP, you can include Simple IRA Catch-up to an employee's annual maximum deduction and contribution if they've already met the threshold (for example, for 2025). The system has been updated to let you track its details to your employee's payroll information. Moreover, only one deduction type is allowed per retirement plan. If you still want to make said changes, you'll have to delete the current plan (Regular Simple IRA) and add a new one (Simple IRA Catch-up).

To delete a payroll deduction item, here are the steps you should follow:

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Deductions & contributions, select Start or Edit.
4. Click the trash bin icon next to the deduction you want to remove.
5. Select Delete, then Done.

After that, set up a new deduction item for Simple IRA Catch-up. Follow these steps to do so:

1. Go to Payroll, then Employees.
2. Choose your employee.
3. From Deductions & contributions, select Start or Edit.
4. In the Deduction/contribution dropdown, pick + Add deduction/contribution.
5. From Deduction/contribution type, select Retirement plans.
6. Set Simple IRA Catch-up in the Type section.
7. Add a Description. This is the deduction or plan name. Appears on paychecks.
8. Decide how your deduction is calculated. Then, enter the amount or percentage.
9. Click Save, then Done. 

Moreover, you can create a summary report if you wish to view your employees' totals and other payroll-related data. To guide you through the process, check out this article: Create a payroll summary report in QuickBooks.

Moreover, if you're looking to elevate your payroll processing, I highly recommend exploring QuickBooks Payroll. With its robust time-tracking features and the speed of faster direct deposits, you may find these enhancements can truly transform how your business operates.

I am dedicated to offering tailored solutions to your unique payroll needs as you manage retirements plan in QuickBooks. Your concerns truly matter to us, Mari, so don’t hesitate to reach out whenever you need assistance. Wishing you a fantastic day ahead!