Simple IRA deductions to employees financial institution

I'll help you set up the Simple IRA deductions for your employees, Martina55.

In QuickBooks, there are two ways to set up a payroll item for retirement benefits. I've listed them below.

• EZ Setup (uses standard settings; recommended for most users)
• Custom Setup (allows editing of settings; recommended for experts)

To set up the item via EZ Setup, I'd suggest following these steps:

1. Click on the Lists menu.
2. Select Payroll Item List.
3. At the lower left of the Payroll Item List, click Payroll Item, and click New.
4. Select EZ Setup and click Next.
5. Follow the onscreen instructions.
6. After you create a payroll item, edit the payroll item to make sure all necessary vendor information has been entered. 

For Custom Setup, I'd recommend following the detailed instructions in this article: Set up a Payroll Item for Retirement Benefits.

Once you have the payroll item added, you'll need to manually add it to the employee's record. Here's how:

1. Go to the Employees menu and then select Employee Center.
2. Double-click the employee to open the Edit Employee window.
3. Click the Payroll Info tab.
4. In the Additions, Deductions and Company Contributions section, select the new payroll items from the Item Name drop-down list.
5. Click OK.
6. Repeat these steps for each eligible or participating employee.

Additionally, I've added these articles that'll help you learn more about setting up and managing payroll items in QuickBooks Desktop.

• Set up Roth 401(k) and Roth 403(b), and Roth 457(b) Plans
• Set up and Pay Scheduled or Custom (unscheduled) Liabilities
• Payroll Items on Paycheck are not Calculating or are Calculating Incorrectly

Feel free to comment down below if you have any other concerns or questions about setting up your Simple IRA deductions. I'm always glad to help in any way I can.

Hi Martina55,

Hope you’re doing great. I wanted to see how everything about setting up the SIMPLE IRA deductions in QuickBooks Desktop. Do you have any clarifications? If you do, just let me know. I’d be happy to help you at anytime.

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

Hi, thanks for checking on me.  I do have a question, is it possible to set up in QBs desktop a payroll item to take out employee's Simple IRA contribution and automatically deposit into employee's Schwab account?  I have managed to set up everything else in QBs except for this.  Lastly, will QBs produce the tax liabilities that will need to paid for the employee's contribution that is taken out of her payroll?

Thanks!

Martina55

Hi Charlene,

How do set up payroll to automatically take out the employee's contribution ($300) the 20th of each month and be automatically deposited to employee's Schwab Simple IRA account?   And will QBs inform me of the tax liabilities amount and deadlines for the employee contribution?  We have only one employee participating.

Thanks,

Martina55

Hi Martina55. Allow me to chime in and share information about the Simple IRA.

By adding this item to the employee's profile, QuickBooks will automatically deduct this when creating the employee's paycheck. You can find it in the Other Payroll Items section on the Paycheck Details as a deduction. Check this article for the detailed steps: Retirement benefits (401(K), Simple IRA, etc. 

If you have set up a schedule for tax liabilities, amounts and deadlines will show on the Pay Liabilities tab.

Here's how to create a schedule:

1. Go to the Employees menu, then select Payroll Center.
2. Select the Pay Liabilities tab.
3. Under Other Activities, select Change Payment Method.
4. Go to Schedule payments, then select the tax liability you want to edit or schedule a payment for.
5. Select Edit, then enter the information.
6. For QuickBooks Desktop Payroll Enhanced users:
   • If the payment frequency option you need isn’t available in the drop-down list, select the Let me use a different payment frequency checkbox. Select Next, then set up a custom payment schedule.
   • The IRS doesn't offer a weekly liability payment schedule. If you're required to make a payment several days after running payroll, the IRS considers it a semiweekly basis. Choose After Each Payroll from the Payment frequency drop-down to set it up.
7. Select Finish, then Finish Later.

You can check out our guide for you convenience: Set up and pay scheduled or custom (unscheduled) liabilities. It also includes the instructions on how to pay your liabilities.

I’m more than happy to help you out again if you have follow-up questions about payroll tax liabilities. Have a nice day.