Learn about states that require employers to offer retirement plans to their employees. And find out how to get a retirement plan to meet your needs and set it up in QuickBooks Online Payroll and QuickBooks Desktop Payroll.
Step 1: Understand states with mandated retirement programs
The following states mandate that employers either offer a traditional retirement program, or enroll in a state-sponsored retirement program. If your business is required to offer retirement, you can set up the plan and get the reports in QuickBooks. You’ll need to pay the retirement premiums and upload the reports to your state agency.
Step 2: Get a retirement plan
You can choose a traditional retirement plan or the plans offered by your state.
The state Savers plans aren’t traditional plans as defined by the IRS, so they’re after-tax deductions and don’t report on your employees’ W-2s. The state plans are subject to the same deferral limits as regular retirement plans.
If you use QuickBooks Online Payroll, check out affordable 401(k) plans on the benefits tab in QuickBooks Online.
Your employees can contribute to more than one retirement plan at a time. Keep in mind that contribution limits are cumulative for all plans your employee contributes to.
Step 3: Set up and track your retirement plan in QuickBooks
Once you select your retirement plan, you’ll need to set up the payroll items in QuickBooks.
|Note: Not sure which payroll service you have? Here's how to find your payroll service.|
Step 4: Get a state retirement report in QuickBooks so you can pay your retirement premiums
You’ll need to pay the premiums and file these reports with your state agency. Report tracking has been added to QuickBooks Desktop and QuickBooks Online for all states listed above.