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gatehealing
Level 4

Setup SEP IRA in QB for mac

No idea where to put this topic. That is how newbie level I am with this, so I need some specific How-To advice here.

I am a single-member LLC with an S-corp election. I set up a SEP IRA at the end of 2021 that my LLC contributes to on my behalf. This is done from my LLC business checking account.

How do I set up the SEP-IRA correctly? I know it needs to be some sort of expense account, but I cannot seem to find clarity on exactly what menu items to use to set it up. Do I go to Chart of Accounts and add it? If so, what are the drop-down menu choices? Is there a specific Retirement Account Expense someplace that I have not been able to find?

 

Any specific help would be greatly appreciated.

Thanks!

Jon

14 Comments 14
LieraMarie_A
QuickBooks Team

Setup SEP IRA in QB for mac

Hi there, @gatehealing. I've got the detailed steps on how to set up a SEP IRA.

 

This item is used either for employee contribution to 408(k)(6) SEP or company contribution to an employee's 408(k)(6) retirement plans. To set up the payroll item for employee contribution, follow these steps:

  1. Go to Lists and choose Payroll Item List.
  2. Click on the Payroll Item drop-down and select New.
  3. Choose Custom Setup (allows editing of all settings; recommended for expert users) and click on Next.
  4. Choose Deduction if this item will be used for employee contribution, enter a name, and select the name of the agency to which liability is paid. Then, choose 408(k)(6) SEP in the Tax tracking type window. 
  5. Place a checkmark next to any item(s) in the Payroll Item column that will be calculated after this deduction is taken. For example, if you check Federal Withholding, federal withholding tax will be calculated on the adjusted (after deduction) gross wages and click Next.
  6. In the Calculate Based on Quantity window, select Neither and click Next.
  7. If the same deduction rate or amount applies to all or most employees, enter it into the field at the top of the Limit Type window. The annual deduction limit (if any) should be entered into the lower field only if the limit is the same for all or most employees. Click Finish to complete the payroll item setup for the retirement plan deduction. If the deduction amount is different for some employees, access those employee profiles and edit the deduction amount.

 

If you need to set up a retirement plan company contribution item, follow these instructions:

  1. Go to Lists and choose Payroll Item List.
  2. Click on the Payroll Item drop-down and select New.
  3. Choose Custom Setup (allows editing of all settings; recommended for expert users) and click on Next.
  4. Choose Company Contribution if this item will be used for the company and click Next.
  5. Enter a name for the contribution and click Next. Do not use the same name entered for the employee deduction.
  6. In the Liability account drop-down list, select the same liability account that you chose earlier.
  7. Select an expense account from the Expense account drop-down list, and click Next.
  8. Then, choose 408(k)(6) Co. Match in the Tax tracking type window and click Next three times.
  9. If the same contribution rate or amount applies to all or most employees, enter it into the field at the top of the Limit Type window. The annual contribution limit (if any) should be entered into the lower field only if the limit is the same for all or most employees. If you want a limit for retirement, enter the 50+ rate here as the lower limit has priority.
  10. Click Finish to complete the payroll item setup for the company contribution. If the contribution amount is different for some employees, access those employee profiles and edit the contribution amount.

 

As a reference, you can refer to this article for further guidance: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

 

Additionally, I've got you some resources to learn more about IRA deduction limits and retirement plans from the IRS website: 

 

Be sure to let us know if you need further assistance with setting payroll items. We're always here to help.

gatehealing
Level 4

Setup SEP IRA in QB for mac

Thank you. Right off the bat, in QB mac desktop 2020 there is no Payroll Item List in the List menu. If I just click Items in the Lists menu, the only New item to click on is located under the + symbol on the bottom left. If I click that, there is no Custom Setup, but there is a Custom Fields button; clicking this yields an popup that reads, "There are no custom fields defined for items. To define a custom field, click Define Fields." If I click Define Fields, I get checkboxes with text fields to the right where I would type a label. If however, I click Type in the New Item box, there is no  item for Company Contribution.

 

Are you sure you are talking about QuickBooks Desktop for Mac 2020? It seems that there are none of the features you refer to.

 

Basically, I do not use QB payroll services. I just do it myself. I just need to set QB up so that I can enter my LLC's contributions to the SEP IRA.

gatehealing
Level 4

Setup SEP IRA in QB for mac

It looks like you are referring to steps in QuickBooks Desktop Payroll per the article you referenced. I need info for QuickBooks Desktop for Mac 2020 (not Payroll).

ChristieAnn
QuickBooks Team

Setup SEP IRA in QB for mac

Hi there, gatehealing.

 

I appreciate you for coming back to the thread to add some clarification about the steps shared above. With this, I'll be sharing additional details about recording SEP-IRA in QuickBooks Desktop for Mac. Then, ensure you'll be routed to the right person to assist you further with this matter.

 

The instructions shared by my colleague above are for QuickBooks Desktop Payroll. Then, when setting up a payroll item for SEP-IRA in QuickBooks Desktop Mac, you'll have to use an Intuit Online Payroll.

 

Since you're not using a payroll service, you can manually enter/record the said retirement plan in QBDT MAC as an alternative. To do this, I suggest consulting an accountant to ensure that your records are in shipshape. They can provide suggestions on how to properly handle the entry.

 

Lastly, you may refer to this article to view different details on changes, improvements, and fixes that were made to QuickBooks Desktop for Mac 2020: Release notes for QuickBooks Desktop for Mac 2020.

 

Feel free to visit the Community again if you have additional questions or concerns about recording your retirement plan. I’ll be right here to answer them for you. Wishing your business continued success.

gatehealing
Level 4

Setup SEP IRA in QB for mac

My accountant has explained that it should be fairly straightforward if I can just get some step-by-step instructions here; she is about to be gone for a couple of months and cannot set it up for me right now. She will be sure that my paperwork and records are in good order. I just need to know how to set it up. I do not need payroll setup for this. I just want to enter my yearly contribution manually. I usually do this towards the end of the year.

 

Please, can somebody give me step-by-step on how to setup my SEP IRA in QB Desktop mac 2020 so I can enter my contributions and accumulations as it grows?

 

Thanks again for all the help.

J

LeizylM
QuickBooks Team

Setup SEP IRA in QB for mac

Thanks for getting back to us, gatehealing. 

 

I'm here to make sure you'll be able to set up SEP IRA in QB Desktop mac 2020.

 

Here's how:

 

  1. Select the Gear icon from the left menu. After that, go to Payroll Settings.
  2. Select Deductions / Contributions from the Payroll menu.
  3. Add a New Deduction/Contribution.
  4. Select Retirement Plans as the Category.
  5. Choose the appropriate Retirement Plan for Type.
  6. Enter the provider's or plan's name.
  7. Click  OK.

 

I've added this article to learn what’s new and improved in the latest updates to QuickBooks Desktop for Mac 2020: Release notes for QuickBooks Desktop for Mac 2020.

 

This should point you in the right direction. Let me know if you have further questions or concerns about recording your retirement plan. I'm always here to help.

gatehealing
Level 4

Setup SEP IRA in QB for mac

What gear icon? From the Lists > Items menu? If so, there is no Payroll Settings in there. To be clear, I am not doing any payroll stuff here. I do payroll myself and manually enter my paychecks, manually enter the splits for taxes (FICA/FIT), and manually enter my payments to EFTPS (my 941 payments each paycheck).

Are we talking QB Desktop for Mac 2020? There is no gear icon that I can find unless you are expecting me to go to a certain window. If so, please specify which window.

gatehealing
Level 4

Setup SEP IRA in QB for mac

If you mean goto Employees > Payroll menu item, that goes to a webpage and I am not using QB payroll online. There has got to be a way to do this.

LeizylM
QuickBooks Team

Setup SEP IRA in QB for mac

Thanks for getting back to us, gatehealing.

 

You can manually enter/record the mentioned retirement plan in QBDT MAC, if you don't use a payroll service. To do so, I recommend speaking with an accountant to ensure that your records are accurate. They may be able to offer advice on how to appropriately manage the entry.

 

As a reference, you can refer to this article for further guidance: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

 

Please continue to visit us here if you need anything else.

gatehealing
Level 4

Setup SEP IRA in QB for mac

Please see my reply a couple of rows up: My accountant has assured me that I’ll be able to do this if I can just get some step by step guidance on what to do in QB desktop Mac 2020 (no payroll); she will be sure my paperwork etc is all setup properly and will tweak my qb when she receives the file. But she is out for a couple of months so I need to get it setup myself.

 

For the third or 4th time, please, please just let me know exactly how to set this up without using qb payroll services. I am m beginning to get a bit frustrated with this as I’ve been very clear multiple times. I really appreciate y’all’s patience as I try to get this done, but my own patience is wearing thin.

JasroV
QuickBooks Team

Setup SEP IRA in QB for mac

I appreciate you for getting back to us and for sharing additional information, @gatehealing.

 

Allow me to chime in and provide some clarifications on how to set up IRA in QuickBooks Desktop (QBDT) for Mac. 

 

Setting up a SEP IRA in QBDT for Mac without a payroll service isn't possible. You'll need QuickBooks Online (QBO) payroll subscriptions to essentially set this up. Once you have one, you'll want to set it up on your Mac platform. I'll show you how.

 

  1. Go to QuickBooks and select Preferences.
  2. Click Payroll.
  3. In the Payroll window, go to The Employees menu and select the Payroll menu item: drop-down. 
  4. Click Launches QuickBooks Payroll for Mac, or select Launches Aatrix Top Pay, if you're using Aatrix for your payroll.
  5. Select Launch or Get Started, then close the Preferences window.

 

You can also see this link for more details: Set payroll preferences in QuickBooks Desktop for Mac.

 

Once done, you can now set up your payroll item. You can refer to the steps outlined by colleague LeizylM above. You can also utilize this link for additional details: Retirement plan deductions/contributions.

 

When everything is all set, I recommend consulting with your accountant once they are back. This way, they review your accounts and ensure everything is set up accurately. 

 

I've also collected these links that can guide in seamlessly managing your payroll:

 

 

You can always count on me if you need more help with your payroll or QuickBooks. I'll be more than happy to back you up anytime. Keep safe and have a good one!

gatehealing
Level 4

Setup SEP IRA in QB for mac

I have checked with my CPA and a friend that is now a Tax Attorney and CPA and both agreed with what my CPA said, "It’s simply a matter of creating an Expense account and categorizing the Contribution Check to the New expense." . . . It is NOT necessary to purchase another product from Intuit to get this done. Both my CPA and CPA/Tax Atty friend have done this frequently for people like me that are single-member LLC's with S-corp elections.

 

I have now completed this and it works just fine and is extremely simple. This leaves me with a point for QB:

If it truly IS impossible, be clear and upfront in the very first or second response rather than just describing alternatives . . . clearly state that it is not possible, then give the alternative; but don't skip over the "it's not possible" statement.  If you are not certain that it's truly impossible, let the customer know that you will look into it further to see if there might be a workaround (there is in this case).

gabulldag99
Level 1

Setup SEP IRA in QB for mac

I would love to see the steps you used.  I'm attempting the same setup in QBO W/I Payroll.  I assume I should find SEP IRA from business checking and categorize as Expense like SEP IRA Employer Contribution.  Am I won't the right track ?

SirielJeaB
QuickBooks Team

Setup SEP IRA in QB for mac

It's nice to have you here in QuickBooks Online, gabulldag99. Thanks for getting in touch with us.

 

Currently, the SEP-IRA contribution is not available in QuickBooks Online. To know the different retirement plan contribution limits in QBO, please visit this article: Understand retirement plan contribution limits

 

You can create an expense check as a workaround and list the payments under Other Current Liability in your chart of accounts. It would also be wise to speak with your accountant or a tax specialist to get the best guidance on how to record this correctly.

 

Here's how an account under the Chart of Accounts:

 

  1. Click New on the Chart of Accounts tab by going to the Accounting menu.
  2. As the Account Type, select Other Current Liabilities, and as the Detail Type, select Other Current Liabilities.
  3. Enter the account's Specific Name and Description here.
  4. To confirm the changes, click Save and Close.

 

Once finished, make a transaction for the SEP-IRA contribution expenses. I'll show you how:

 

  1. Click New Transaction from the menu under Expenses.
  2. Then, decide to whom you want to send the contribution(s) after selecting Expense.
  3. Search for the account you created under the Account Details section.
  4. Click Save and New or Save and Close after entering the remaining expense information.

 

You can also run the Transaction Detail by Account report, then filter it to show only All the Current Liabilities Account. This will let you track the SEP-IRA contributions you recorded.

 

If you want to learn how to pay or file state and federal payroll taxes online, check out this article: Pay and file payroll taxes and forms in Online Payroll.

 

I've also included this article if you want to review downloaded bank and credit card transactions and put them in the correct accounts: Categorize and match online bank transactions in QuickBooks Online.

 

Please drop by again if there is anything else you need to clarify. I'm always here to assist you. Have a great day, gabulldag99!

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