Simple IRA Annual Maximum

Hi there, @AlexG92.

I'm here to help share insights about the retirement plan contribution for employees' payroll in QuickBooks Online.

The annual contribution for an employee retirement plan can no longer be change once entered in the payroll system. This is the reason why you've seen a locked payroll item upon attempting to perform the changes. Kindly read and use this article to learn more: Set up a Retirement Plan for an Employee in QuickBooks Online Payroll.

Saying you've entered the incorrect annual plan contribution, I recommend contacting our Customer Care Support. You can work with one of our specialists in changing the plan contribution setup for the employee in question. To do so:

1. Go to Help.
2. Select Search.
3. Click Contact Us.
4. Enter Change an employee's annual retirement plan contribution in the What can we help you with? text area.
5. Select Continue.
6. Click Start a chat or Have us call you to connect with our team online.

For all the features and functions of QuickBooks, it's best to log in using any of our supported browser versions and use this reference for guidance: Help Articles in QuickBooks Online Payroll. Also, you can read subtopics that will describe how a feature is used and how to accomplish tasks related to its functions.

Hit me a reply in the comments below if you have questions about this. Don't forget to include my name, @JonpriL, in your reply so that I can get back here and answer all your QuickBooks and payroll concerns.

When you deleted the old deduction and added the catch up, did it affect your payroll summary in any way? Im having the same issue, and I dont want it to mess up previous paychecks. 

The only thing it will affect is the net pay.  That will more than likely decrease a little to catch up till the end of the year.  It won't affect past payrolls.  As long as your employee doesn't have an issue with a slightly lower net pay, then it won't affect anything.

Hope this helps.

-Alex

I have a client that needs to fully fund his simple IRA. He has waited til now to ensure there was enough funds and not put his company in a cash flow issue. How can I do this and not increase his income for the paycheck? Or can I edit the w2 at the end of the year to move from box 1 to box 12?

Thank you for posting your question here, Aspencer14.

I want to make sure I fully understand your concern with your client's Simple IRA plan in QuickBooks Online (QBO) so I can provide the most accurate resolution. To better assist you, I have to ask for more details. 

May I know if the retirement plan is tax-deferred or taxable? Also, is this a deduction or a company-match contribution?

Getting clarity on those two points will help me give you the best guidance on how to record and track this properly QBO without increasing your client's taxable income incorrectly.

I look forward to hearing back from you and assisting further once I have those extra details. Have a great rest of the day. 

This is a tax deferred contribution and a deduction. 

Hello Aspencer14,

Let me route you to the best support to ensure the tax-deferred contribution and deduction are recorded correctly.

The recording of the said contribution depends on its initial setup. If you have the ability to edit the W2, I assume that the total IRA amount was not originally recorded in QuickBooks. To ensure accurate recording of the contributions, we will need to make a payroll correction.

With that, I suggest reaching out to our payroll support team. One of the agents has a tool that can view your account, and they can guide you through the payroll correction process. You can contact them through the ? Help icon.

Furthermore, you can check this article as your guide in filing and paying taxes: Pay and file payroll taxes and forms electronically in QuickBooks Online Payroll.

You can always get back to this thread whenever you have payroll concerns.