QB was notified in May that IRA deductions and Employer match were calculating incorrectly. Why is it still incorrect on the July 31 pay? Their solutions is that we go in and manually adjust everyone to a $ amount that is fixed. That is not the solution to QB not being able to take a % of gross pay and enter it as a deduction. In addition, if we do that, we will never know when / if the real problem has been fixed. How are others handling this issue? I don't feel there is a sen

Hello there, @lsefcik.

Currently, there's an ongoing investigation where IRA deductions and employer match aren't calculating correctly. I know you've called in, I highly recommend contacting our support team again.

This way, they'll add you to the list of affected users and update you through email once information is available.

To reach them:

1. Sign in to your QuickBooks Online account.
2. Go to the (?) Help icon.
3. Click Contact us.
4. Write a small brief of the topic, click Let's talk.
5. Select your preferred way to connect with us.

Once done, you can always visit our Employees and payroll taxes page for QuickBooks Online to learn some tips and tricks on managing your payroll.

We appreciate your patience while we're fixing this. Please feel free to leave a comment below if you have any other concerns or questions. I'll be glad to help.

Our engineers are closely working on a fix to this concern, lsefcik. 

We'll send out email notifications every time updates are provided. 

Thanks for your patience while we're getting a resolution to this issue. 

Well, the same exact thing happened again to a new employee on our 10/31 payroll. Did you possibly fix people and not the system? You are deducting a persons insurance premium prior to calculating their IRA % off of gross salary. That is not correct unless the company has an IRS designated cafeteria plan, which WE DO NOT!! Our employees IRA deferral and the company match MUST be calculated on gross wages!!! Why can’t someone high up at QB understand this and properly calculate it?I am still waiting for this to be corrected. I cannot keep dealing with these mistakes so for now I have hard coded all IRA contributions , but it is ridiculous that I have to do this. You would think a payroll service would understand how to properly calculate 401k and IRA deductions and matches. Unless someone provides information that their insurance plan is a cafeteria plan it should be assumed it is not! This cannot just be happening to me; systems don’t work that way. If a company fails to take correct deductions and matches, when it is discovered the company is responsible for paying back into the IRA or 401k BOTH the employee shortfall and the employer shortfall along with interest! People are trusting QB to provide the right amount and sadly I have lost faith that this can be done consistently. 

Hi, lsefcik.

Generally, compensation means the sum of a participant’s wages, tips and other compensation subject to federal income tax withholding and elective deferral contributions the participant made to the SIMPLE IRA plan.

For now, editing the check manually is the best way to correct the company contribution deduction. I'll be personally taking note of this and pass along all the feedback you have to the appropriate channels so you're able to reach a point of resolution as quickly as possible.

You may want to visit this link from the IRS to get more information about the SIMPLE IRA plan: https://www.irs.gov/retirement-plans/simple-ira-plan-faqs-compensation.

In case you want to know some "How do I" steps in QuickBooks Online, you can always visit our Help Articles page for reference. You can also check out the QuickBooks Blog site for product updates as well as business tips from our accountant. 

I'm always here to help you out if there's anything else I can help you with. Have a good one.

Isefcik,

I have also had the same issue, among others, with QuickBooks Online Payroll.

"Our engineers are closely working on a fix to this concern" is the message I keep getting from them.  I am  extremely frustrated with this because what this statement tells me is that either the "engineers" are incompetent or they are just lying to us and not working on the issue at all.  It has been literally years since this issue was brought to their attention.

Our employees have 3% SIMPLE IRA deferrals and are not calculating correctly.  I have to manually calculate and adjust every single employee on every paycheck, which makes me wonder why we're even paying Intuit for the service, and what other items are being miscalculated.  

Hi benh1,

We want to make sure that the IRA deductions and Employer match is calculating correctly.

This issue has already been resolved and QuickBooks is calculating based on IRS regulations. You'll want to review the computation for your deferral and employer contribution and ensure to include bonuses, overtime, commissions, and all other compensation categories to calculate the deduction.

Please check this link for more information: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-simple-ira-plans.

I have added these help articles for more information about payroll: Employees And Payroll Taxes.

If there's anything that you want to ask, please let me know so I can help you.

It was discovered in my two Feb payrolls that the people in my Simple IRA Fidelity Catch up account, were not having their IRA contribution calculating correctly (same problem as we had last year with the regular IRA account).  For anyone that has insurance premiums, the calculation is not deducting their sect 125 cafeteria plan insurance payments in calculating the employee deduction and employer contribution. I have 3 different case numbers from last week and spent at least 10 hours on the phone.  For now I have people hard coded, but that is not the solution.  The solution is to have the system take the percentage on gross less insurance, less HSA and come to the right amount of deduction and employer contribution. Can someone please notify me when this has been fixed?

Thanks for getting back to us, @lsefcik.

Correcting the company contribution needs a closer look with our payroll specialist. They have tools to create a positive and negative adjustment to correct your deductions.

Here's how:

1. Sign in to your QuickBooks Online account.
2. Go to the Help icon.
3. Select Contact Us.
4. Enter your concern, then select Continue.
5. Click Get a callback option and then enter your contact information.

For more information about simple IRA, please click this article: SIMPLE IRA Plan FAQs - Compensation.

You'll want to know some "How do I" steps, you can visit our Help articles in QuickBooks Online.

Please post again if you need other help. Take good care.

I just spent an hour with QuickBooks support because we have the same issue.  I was told make the IRA a quantity and manually calculate WITH EACH PAYCHECK.  Has this been resolved yet?

Hello there, TammyW,

The investigation related to this error is already resolved. I recommend reaching back to our QuickBooks support so they can check why you're still getting it.

1. Click the Help icon.
2. Select Contact Us.
3. Enter your concern, then select Let's talk.
4. Select from Start messaging or Get a callback.

Let me know if you need help with anything else.

I have contacted them and they tell me this has not been resolved and they will submit to engineering.  The Section 125 needs to be deducted from the gross wages before calculating the Simple IRA.  This is not the case.  They checked my set up and everything was correct - then they told me it would need to be submitted to their people.

Experiencing this issue for a long period can be a real pain, TammyW.

I appreciate the time and effort you've spent with one of our support agents. Our Customer Support Team will be reporting this one to our engineers. Then, they'll investigate what's causing the IRA deductions and Employer match not calculating correctly.

You'll be notified through an email about the update of this case. You can also reach out to them to check the progress of this issue. Just follow the steps provided by my colleague and provide the case or reference number. 

For more details about the Simple IRA Plan, check out this link: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-simple-ira-plans.

I have added these help articles for more information about payroll: Employees And Payroll Taxes.

We appreciate your patience in this matter. I'm just one click away if you need a hand with running payroll reports or any QBO related. Keep safe and healthy. 

This has been happening since last year when they updated their online payroll software I guess.  Previously, it worked flawlessly.  I have to change this every payroll!!!!!!!  You would think that a software developer could correct this without making this so hard on the user.  With the amount of users telling them it is still miss-figuring the GROSS wages to apply the percentage of employer and employee deduction, you would think that they would fix this across the board.  We shouldn't have to manually correct a payroll deduction every time we process payroll.  Not acceptable.  Thank goodness we have only a handful of employees.  Still a pain but better that a larger employer.

Hi @Gsnook,

I can understand how it could be time-consuming for you to manually update the amount on your employee's deductions.

We're aware of this issue that occurs within QuickBooks Online Payroll. Rest assured, our product engineers are currently working on a fix for this. You can give our Technical Support team a call if you haven't contacted them yet. They can add you to the list of our affected users, as well as receive a notification email whenever an update becomes available.

Here's how:

1. Log in to your QuickBooks Online company.
2. Click the Help menu.
3. Select Contact us.

See this article in case you need to make some changes on a paycheck: Edit a payroll paycheck. See the steps Under the QuickBooks Online Payroll section.

Have other questions in mind? Post them in the comments below, and I'll get back to you.