Showing results for 
Search instead for 
Did you mean: 
Level 1

Simple IRA employee contribution

I can't find anywhere how to set up a deduction.  I have an employee who wants to contribute more into the simple IRA that the company already contributes to. 

Any suggestions where to look


3 Comments 3
QuickBooks Team

Simple IRA employee contribution

Hi there, @freundpriority1.


I'd be glad to help set up a deduction item for Simple IRA in QuickBooks Desktop (QBDT).


There are two ways to set up a payroll item for retirement benefits.


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

To set up the item through the EZ Setup.


  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. 

To set up the item through the Custom Setup, you may check and follow the detailed instructions in this article: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).


On the other hand, if you need further assistance with the process, you may get in touch with our QuickBooks Support Team. For the support's contact information, you may check it here: Contact the QuickBooks Desktop Customer Support Team.


Please feel free to add a post/comment below if you have any other questions about setting up Simple IRA employee contribution in QuickBooks. I'll be always here happy to help you!

Level 1

Simple IRA employee contribution

I used the EZ-Setup method when creating an employee contributed SIMPLE IRA deduction.  I noticed during this EZ-Setup wizard that the Taxes section only has Federal Withholding, Local Withholding and LST checked.  State (Pennsylvania) withholding is not checked as a default.  When I ran payroll I found that the state withholding amount isn't a true calculation for our state (3.07%) when using the adjusted gross income.  Why isn't State withholding checked in the EZ-setup wizard under taxes?  I don't want to change the QB default settings unless instructed.


Simple IRA employee contribution

Hi @matoje,


Thanks for joining the thread. I'm here to ensure your payroll calculations are accurate and without errors. 


The first thing I suggest is to update your QuickBooks Desktop to the latest version. Right after that, you can update your payroll tax table as well. 


If you were in the process of creating the paycheck stated above, you have the option to revert it. 


Here's how:


  1. In the Enter Payroll Information window, right-click on the employee name in question.
  2. Choose Revert Paycheck.

Additional troubleshooting steps are in this article: QuickBooks Desktop calculates wages and/or payroll taxes incorrectly


I also suggest you visit this article: How QuickBooks calculates payroll taxes. It has tables for the calculation methods, as well as a short description of what you can expect to see on your employee's paychecks.


In case you have clarifications or other concerns, feel free to comment below. I'll be sure to get back to you. 

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up