How to manually pay a SIMPLE IRA

Thanks for choosing QuickBooks Online for your business, @JThouron. Glad to know you've already set up the employee accounts to deduct from payroll. 

You can pay your employee's SIMPLE IRA contribution directly to their financial institution. Then, record the payment you've made in QuickBooks by creating a journal entry. Here's how:

1. Select the + New menu, then select Journal entry.
2. Select an account from the Account field on the first line, then enter the amount in the correct column. 
3. On the next line, select the other account you're moving money to or from, then enter the amount in the correct column. 
4. Ensure that you have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
5. Enter information in the memo section so you know why you made the journal entry, then select Save and close.

Please know that journal entries require an understanding of debits and credits. I'd recommend reaching out to your accountant if you have specific questions about your Chart of Accounts. You can also find a ProAdvisor if you don't have one yet. 

For more insights, read through this article to learn about retirement plan deductions/contributions in QuickBooks. 

Visit again if you have additional concerns. I'd be here to be your guide. 

Hi JThouron,

Hope you’re doing great. I wanted to see how everything is going about the concern you had yesterday about recording the SIMPLE IRA contributions in QuickBooks. Was it resolved?

Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

Greetings again,

Thank you for your response!

If I needed to print a check, how do I start the process from there? Do I just select the SIMPLE IRA liability acct?

Thank you :)

It's great to hear again from you, JThouron.

I'd like to share additional information on how to print check with liability account.

Here's how:

1. Go the Plus Icon.
2. Select Check.
3. Go to the Bank Account drop-down, choose the account you use for liability payments.
4. On the Choose a payee drop-down, select the vendor.
5. In the Account details section, select the account you use for tracking your liability payments then enter the amount.
   1. Go to Workers.
   2. Choose Employees.
   3. Select Payroll Setup.
   4. Choose Accounting
   5. Under the Tax Liability Accounts, you will see your current liability preferences.
6. If you have sub-accounts for each agency you are paying, make sure to point to those specific accounts and enter the appropriate amount for the agency.
7. Click Print Check.

For more insights, read through this article to learn about retirement plan deductions/contributions in QuickBooks. 

Let me know how it works on your end. I'm always here to help you.

I don't see "workers" under account type when i try to set up the account to pay the liability out of.

Good morning, @katiekeisler. 

Thanks for chiming in on this thread. I appreciate you coming here with your question about setting up the account to pay the liability out of. 

To clarify, where are you looking for the "workers" option in your QuickBooks Online? A screenshot of the area would be a great way for me to get to the bottom of the issue. 

Please let me know this information so that I can give you the best solution for your business. Click the Reply button below to respond back to me. I'll be waiting for your post!

Hello: 
Is there a way that this payment can be set up through online bill pay? If so, how is that done? 

Thank you

Hello, Kristy28. 

Thank you for reaching out to the Community. Bill Pay integrates with QuickBooks Online Essentials, Plus, and Advanced, so you can pay, track, and manage bills right inside the software. To learn more about Pay bill in QuickBooks, please check out this article: Bill Pay for QuickBooks Online. 

For additional resources, check out the Retirement plan deductions/contributions article. It provides an overview of how to assign the payroll item to employees and steps to apply the deduction/contribution. 

Don't hesitate to post a comment below if you need further assistance, as I'd be around to help. Have a good one.

Thank you. We do have the online bill pay set up, but when I called QB help desk, she told me that she didn't know that I could write a check for an IRA using that. I have the deduction amounts from the first check, and I can get the financial institution set up as a vendor, but how do I enter the payment information so I can use the bill pay system? Would I enter it as a new bill? Will that deduct it from my liability account properly? Thank you!

Hello there, @Kristy28.

I appreciate you for getting back to us here in the Community. I can show you how to enter the payment information in QuickBooks Online.

You can go directly to the Pay Bills Online section to set up the information you need. You should have an option to enter the bank account details.

Here's how:

1. Sign in to your QuickBooks Online account.
2. Click + New ,then Pay Bills Online.
3. Choose the Bill Pay Online dashboard widget.
4. Go to the Expense tab, then press Pay Bills Online.
5. To set up a vendor with open bills, select Set up Bank Transfers within the same line as the Payee. (Note: To set up a vendor before there are open bills select Set up vendors for bank transfers. You'll need the account number for the vendor.)

6. 

7. Select Enter vendor's bank account info.
8. Press Next.
9. Enter the vendor's bank account information.
10. Hit Save.

Also, yes, you can create a new bill to pay using online bill pay. After entering the transaction, you can follow these steps to make payment:

1. Sign in to your QuickBooks Online account.
2. Click the + New option in the upper-left corner.
3. Hit Pay Bills Online.
4. Select the checkbox on the bills you want to pay, then Next.
5. Review the payment info. If you need to make any updates, select Edit details.

   Note: The Memo field will only appear on Paper Checks.

6. Select Submit payment to submit your scheduled payments.

However, using this process will not deduct the amount directly from your liability account. I recommend contacting Bill.com Support to verify if they support IRS payments and to further assist you with the process.

If they don't and you decide to pay taxes outside QuickBooks, you can record them manually in the system. I suggest following the detailed instructions in the Recording prior tax payments article.

I've attached an article you can use to learn about the option available in QuickBooks for paying taxes online, as well as how to file forms: Pay and file payroll taxes online.

Please let me know if you need anything else regarding managing payroll taxes. The Community and I will be here to help you. 

How would I manually pay a Simple IRA using Quickbooks Desktop?  Can I set this up using Bill Pay or would I have to write a check?

Thanks in advance!

Hello!

How would I manually pay a Simple IRA using the Quickbooks Desktop version?  Can I set this up using automatic Bill Pay or would I have to write a check?

Thanks in advance!

Hey there, @mathieug872. 

We're here to help you pay your Simple IRA plan in QuickBooks Desktop.

We have to manually create a check to pay the contribution for the Simple IRA plan and then send it to their financial institution. First, let's create a payroll schedule for Simple IRA to help you keep track of when they’re due.

Here's how:

1. Go to the Employees menu, then Payroll Center.
2. Select the Pay Liabilities tab.
3. Under Other Activities, click Change or Manage Payment Methods.
4. Select Benefit & Other Payments, then Schedule Payments.
5. Under the Benefits and Other payments column, select the benefit or liability you want to set up a schedule for. Then select Edit.
6.  Select the Payee (Vendor).  
7. Enter the Account Number. Then select the Payment Frequency.
8. Select Finish to close the window.

Then, follow these steps to pay a scheduled liability:

1. Go to Employees, select Payroll Taxes & Liabilities, then select Pay Scheduled Liability.
2. In the Pay Taxes & Other Liabilities window, select the tax or other liability you want to pay from the list. Then select View/Pay.
3. Review the dates and the amounts due. 
4. Select Save and close.

If you need to create a custom payment, refer to this article for the detailed steps: Pay Your Non-Tax Liabilities.

I'm also adding these resources to determine which plan you want to set up for your employees and review its contribution limits:

• Set Up a Retirement Plan
• Understand Retirement Plan Contribution Limits

Visit us again if you have other concerns about tax payments. We're here to help and are committed to providing you with the support you need. Have a great day!

Thank you LieraMarie_A!

Do I have to setup a payroll schedule for our Employees' IRA deduction, in addition to the IRA Company Contribution in this same manner?

Thanks!

You're welcome, @mathieug872. It's great to have you back here.

Yes. In addition to setting up your company Simple IRA contribution, you'll also need to establish a payroll schedule for employee deduction. You can use the steps I provided above to guide you through the process.

For additional information, you can see the following IRS resources:

• Retirement Topics - Contribution Limits
• SIMPLE IRA Plan

Feel free to reply to this thread if you have any questions or need further assistance with setting up your payroll schedule. We're committed to providing you with the best possible service.

Hi LieraMarie_A!

Is there a way that I can change the period dates for the IRA Deduction and the IRA Company Contribution liabilities?  Currently they run Saturday to Friday.  I need the period to be from a Thursday to a Wednesday to match our payroll pay period.

Thanks!

Hello again, @mathieug872.

We're unable to change the payment period dates for the IRA Deduction and IRA Company Contribution liabilities in QuickBooks Desktop. However, you can adjust your payroll pay period to match the payment period for these liabilities. 

Feel free to leave a comment if you have any additional questions or concerns related to payroll.