Settings for Simple IRA Deductions

SLNP · ‎July 15, 2020

Hello QB Experts

We recently began adding IRA Contributions to our employee benefits, but am having trouble understanding the set-up process in QB-Online. The instructions are fairly simple: Add deduction, Simple IRA, Set amount... done.

But nowhere in there do I define the IRA account of my employee's IRA, nor do I define anything about where the money is going aside from indicating the name of the company is Capital One. This concerns me because it feels like I'm just pitching money over the fence and saying, Here's $200 each pay period, you figure out where it goes, and hoping that it ends up in my employee's IRA account.

JasroV · ‎July 24, 2020

I can share some information about adding deductions in your QuickBooks Online (QBO) account, @SLNP.

Once you’ve added the deduction to your employee’s profile, QBO automatically calculates it when running payroll for that employee.

The amount will also be shown on the account you choose on where the payroll transactions will be posted. Let me show where to check it in your QBO account:

Go to the Gear icon.
Select Payroll settings.
From the Accounting section, you’ll see which account your payroll transactions will be posted.

If you wish to change the account:

Click the Edit (pencil) icon.
From the Company contribution expenses, click the Edit (pencil) icon.
Select the account you preferred. If you’re unsure what account to choose, you can refer to your accountant for guidance.
Click Continue and then Done.

You might also want to check this link to learn more about setting up Simple IRA in QBO: Set up a payroll

item for retirement benefits (401(K), Simple IRA, etc.).

Let me know if you need further assistance running payrolls in your QBO account. I’ll be glad to lend a hand. Keep safe and always stay healthy!

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