Simple IRA Catch Up Contributions Desktop

@coloradoperkins  Where, precisely, did you update the limit?

Depending on how you originally set it up, it could be an issue of the Payroll Item limit versus the limit showing in the individual employee's Edit Employee window>Payroll Info tab>Additions, Deductions and Company Contributions box.

@coloradoperkins  Sorry, I apparently can't read.

My reply still stands; in the case of a limit being present in both the payroll item itself and the employee information window, the lower limit will be used.

It was updated in the employee record.  In the payroll item, Quickbooks autofills the limit in the payroll item based on the current year.  It did allow me to change it, but that means it will be the upper amount for all employees and I will have to make sure no one under 50 goes over the $16000?  Or go into each employee record and set the lower threshold? This is so exhausting, it's been an issue forever. QB wants everyone to switch to QBO but their customer service is SO POOR there is no way I'm switching. If I have to switch it will be to Zero or another product line.

@coloradoperkins  Unfortunately, that's the only solution I know of; set the highest limit in the payroll Item, and the lower limit in each 'under-50' employee's individual information.

Maybe someone like @BigRedConsulting  or @Rainflurry  have learned some better tricks, though.

Smart call on not going to QBO; be straight out of the frying pan and into the flaming wolverine's den.

Let me join this thread and provide some information about Simple IRA Catch-up Contribution, @coloradoperkins.

To ensure accurate deductions, you'll need to set up a new payroll item for the Simple IRA Catch-up Contribution for employees who are over fifty. Please see the steps below:

1. Navigate to the Lists menu and click on Payroll Item List.
2. From the Payroll Item dropdown, choose New.
3. Opt for Custom Setup, and then click on Next.
4. Select either Deduction or Company Contribution, then Next.
5. Enter the name of the deduction or company matching item, and then choose Next.
6. Select the name of your retirement plan provider or add it, and input the account number. In the Liability account field, choose the account that tracks the deduction or contribution to be paid. Then click Next.
7. In the Tax Tracking Type window, pick the applicable retirement plan. Select Next twice.
8. Under Calculate based on quantity, select Neither and select Next.
9. Keep the Default Rate and Limit fields empty. You can add the rate and limit when you add the item to the employee profile.
10. Select Finish.

For more detailed steps, feel free to scan this article: Set up or change a retirement plan.

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@FishingForAnswers 

RE: Maybe someone like @BigRedConsulting  or @Rainflurry  have learned some better tricks, though.

What I'd do in this case is set up two deduction items, where one has standard yearly limit and the other includes the catch up amount in the limit.

Then, for each employee, use the appropriate item based on their age at the end of the year. Each year, at or near the beginning of the year, review the employees and see if you should change the item to the catch up item, based on each employee's birth year.

Also, unless the employee wants a lower limit to kick in mid year (and stop their regular deduction so far in the year, which is a bit odd), leave limit field empty on the employee record. This way, each year when the limit goes up, you only need to edit the limit on the payroll item and then the increased limit will be used for all of the employees using that item, with no need to update each employee.

@BigRedConsulting  That does seem like a more efficient way to go about it. I'll have to remember that for the coming year end.