How to post my 3% company match Simple IRA at the end of the year?

It’s great to see you in the Community, TUPSS6439.

I’m glad to know you’re able to set up the company match for your Simple IRA. Let me help ensure you can add the 3% rate to get the correct percentage on the check.

We’ll have to edit the setup for the payroll item and add the 3% from there. I’m here to help you accomplish this task.

Here’s how:

1. In QuickBooks Desktop (QBDT), head to the Lists menu at the top bar and choose Payroll Item List.
2. This will take you to a page that contains the list of all pay types added to the company.
3. Look for your Simple IRA company match right-click your mouse beside it and select Edit Payroll Item.
4. In the Edit payroll item window, click the Next button until you reach the Calculate based on quantity screen.
5. From there, tick the radio button for Neither and press the Next button to continue.
6. In the Default rate and limit screen, enter 3% in the field box and click Next until you reach the Finish button.

Once completed, assign the payroll item to the employee’s profile. Here’s an article that outlines the detailed steps: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.). Then proceed directly to the To add the new payroll items to the employee record section.

When creating a paycheck, make sure to add the Simple IRA company match in the Other Payroll Items section. This way, QuickBooks will calculate the correct amount.

I’m adding some links below to help you in the future. These resources contain solutions on how to resolve when a payroll item is not calculating properly. You’ll see the instructions to assign a pay schedule for your liabilities.

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

Reach out to me again if you have any clarifications on how to manage your Simple IRA contribution. I’ll jump right back in to make sure this is taken care of for you. Enjoy the rest of your day.

Thank you! What if the year has passed and I did not add this to every paycheck for it to calculate? Is there a way to get that after the fact? In addition, I would just have to go into each employee who had calculations and write the check totaling that amount to send in as the company match? Appreciate your help.

Thanks for coming back for more support, @TUPSS6439.

In your case, you'll need to use a liability adjustment to correct employees’ year-to-date (YTD) or quarter-to-date (QTD) payroll info.

You can check out this article for more insights about adjusting payroll liabilities in QuickBooks Desktop. 

Adjusting payroll liabilities can be tricky. I'd recommend consulting an accountant to make sure your books are accurate.

Feel free to get back if you need more help. Take care! 

Thank you! I did do the employee portion on the paychecks through 2021...but I do not think the company portion would affect the payroll liabilities-would it? So Appreciative of all your help!

Thanks for getting back here, @TUPSS6439.

You have to ensure that you entered the company contribution correctly. Let me show you how:

1. In your QuickBooks Desktop (QBDT), click the Lists tab and select Payroll Item List.
2. From the lower left of the Payroll Item List, select the Payroll Item button then, click New.
3. Choose Custom Setup and click Next. Then, pick Company Contribution and click Next.
4. Input the name of the contribution and click Next. Using the same name entered for the employee deduction is not recommended.
5. In the Liability account drop-down list, choose the correct liability account that will be used to track the payroll item.
6. Pick an expense account from the Expense account drop-down list, and click Next.
7. Select the tax tracking-type classification that matches your plan type in the Tax Tracking Type window, and click Next three times.
8. If the same contribution rate or amount applies to all or most employees, enter it into the field at the top of the Limit Type window. 
9. Then, select Finish to complete the payroll item setup for the company contribution.
10. Edit the contribution amount under employee profiles, if the contribution amount is different for some employees.

For your reference about the process, feel free to open this article: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

You can also run payroll reports in QBDT to review your payroll data, employee information, and company finances. 

Leave a comment below if you have any other payroll item questions. I'm just a few clicks away to help you. Have a great day ahead.