Hi, @jcpepwave.

You have to activate and set up your payroll account within QuickBooks Online,  so you'll be able to enter the amounts in QuickBooks. Here's how:

1. Go to Workers from the navigational menu, then select Employees.
2. Choose Get set up to begin the setup process.
3. Enter the company and employee information. 
4. Select the pencil icon in the Pay section. Scroll down on the deductions section. Then select +Add deductions.
5. Select Retirement Plans under Deduction/Contribution type. Then select the type of Retirement plan ( SEP-IRA).

See this article for more detailed instruction: Retirement plan deductions/ contributions.

Once done, you have to record your wages, taxes, and the tax payments in your payroll tax page.

1. In the left menu, click Taxes. 
2. Go to the Payroll Tax tab. 
3. On the Payroll Tax Center page, hit Pay Taxes.
4. Choose the Tax Payment Due you want to pay, select Create Payment.
5. In the Approve Payment window, pick Make Payment Myself. 
6. Choose the Bank Account used when paying the tax.
7. For the Payment Date, select Other and enter the actual date the payment was made.
8. Enter the Check Number (Optional).
9. Once done, hit Record payment.

Also, you can ask your third-party payroll provider if they can track your SEP-IRA plan.

To learn more about recording tax payments in QBO, check these articles:

• Pay payroll taxes electronically or manually
• Make payroll tax payments

Please let me know in the comment section if you need additional help. I'm here to lend a hand. Keep safe always.

Why I am not seeing SEP-IRA as an option under Type field for Deductions?

Glad that you’ve joined us here in the Community, @mail4prashanth. 

I'm happy to offer a little more insight regarding SEP IRA contributions in QuickBooks Online.

Currently, QBO doesn’t support SEP-IRA. This is the reason why you’re unable to locate it within the system.  If you want to set it up, you can reach out to your accountant to ensure everything is properly recorded.

I have here some resources to learn more about retirement plans and pay types descriptions. It includes information on how you can expect each item to affect your payroll tax reporting.

Also, check out this link here about the SEP-IRA plan for additional details. I’m sure you’ll find it helpful. 

Keep posted if you have any other QuickBooks concerns besides the SEP-IRA contributions. We’ll be around to help you. Always take care.

This post was in 2018 and is still true today (QBO does not support SEP-IRA).  Do you have a 2021 solution on recording entries to handle a SEP-IRA?  Thanks.

This is an April 2020 post by a QBO worker and is totally false!  He posts: You have to activate and set up your payroll account within QuickBooks Online, so you'll be able to enter the amounts in QuickBooks. Here's how:

Yet, in reality, QBO does NOT offer a retirement plan type as SEP-IRA!

I'm very confused by this. This is increasing my contributions despite it being a current liability. Should I be writing a check and shouldn't this decrease?

I do this through payroll and it doesn't seem to be bucketing to the correct account.

Thanks for sharing a screenshot of your Chart of Accounts, axwack1.

Let me help with your payroll questions. When you create a paycheck with a SEP IRA, the amount of the payroll item still be reported to your contributions even if it's set up as a current liability. 

You can also create a liability check to decrease your liability. Here's how:

1. Go to the Payroll Center and proceed to the Pay Liabilities tab.
2. In the Pay Taxes & Other Liabilities section, select SEP-IRA and select the View/Pay.
3. Make sure all the details are correct, then click Save and close. 

Let me also give you these articles that you can use as additional guidance and future reference: 

• Run Payroll Liability Balances Report
• Adjust Payroll Liabilities in QuickBooks Desktop

We are just around the corner if you need more help when working in QuickBooks Online. We'll make sure everything is sorted out. 

What if you have no payroll?

This string of messages is for paying an employee for a SEP-IRA.  With no payroll, you would not need to read these messages.

Hi there, tim-shinkle.

Can you tell us what version of QuickBooks you're using? There are workarounds available when tracking SEP IRA if you don't have a payroll subscription. However, the steps are different for each version of QuickBooks. We just want to make sure that we're giving you the right information to address your question.

Please add a reply below to share more details. We look forward to it. 

I don't see pay liability tab.

Thanks for following along with the thread, @interstatesllc-g. I'm here to assist you with your concern about payroll in QuickBooks Desktop. 

Please know that the Pay Liabilities tab is available if you have the QuickBooks Desktop Payroll subscription. For each pay period, you need to calculate the current and year-to-date federal, state, and local tax information for employees.

You can read through these articles that outline the instructions if you want to activate your payroll subscription in QuickBooks Desktop.

• Activate QuickBooks Desktop Payroll
• Enter or Edit Your Payroll Service Key
  
  

I'm also adding this article to help track where your business stands in terms of employee and payroll expenses in the future: Customize payroll reports.

Get back to me here if you have further questions about payroll services in QBDT. I'd be more than happy to answer it for you. Have a nice day.

Mind if I try to high-jack AND revive an older thread? :)

I'm very interested in the workarounds. I'm using QB Pro 2015 desktop ed.

We've got an LLC, two (2) members, making quarterly contribs. to their SEP IRAs.

I'd like to keep this as simple as possible, any suggestions would be gratefully received. TIA.

Mind if I high-jack and revive an old thread? :)

I'm interested in the workarounds to track SEP IRA contributions.

I'm using QB Pro 2015, desktop ed., without payroll.

We've got an LLC,  two (2) members, making quarterly contributions to SEP IRAs.

I'd like to keep the redecoration as simple as I can. TIA

Hello there, @jehill.

I’ll chime in on this thread to share with you the workarounds to track SEP IRA without a payroll subscription in QuickBooks Desktop (QBDT).

To track your SEP IRA, we can create a Journal Entry (JE), and categorize the amount of the contribution to the liability account. To accomplish this manually, you can follow the steps below:

1. Select the Make General Journal Entries from the Company menu.
2. Enter the details needed such as the debit and credits. Please ensure that the following is equal.
3. Select Save or Save & Close.

It would also be good to consult your Professional Advisor to guide you in creating the JE. They are experts in accounting for this properly.

Moreover, I’m adding these resources for your reference about IRA Deduction Limits and setting up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

Feel free to comment back if you have more questions about tracking SEP IRA. I’m just a post away. Have a great day! 

Simple / pretty straightforward way to set-up and pay (annual) COMPANY paid SEP contributions (for small business owners). Figured this out per a 2 min chat with accountant (as compared to the hours of searching QB online help, trying multiple approaches plus over an hour on Chat with QB with no fix LOL).

This works for QB Desktop (2023) + QB Payroll (but there's a replacement step noted for the QB Payroll part that should work if not using QB Payroll)

IMPORTANT: Company-paid SEP contribution is NOT created via employee QB Payroll check process (aka NOT via the create a $0 paycheck using Start Unscheduled Payroll, contrary to what some posts suggest). QB Payroll doesn't allow a $0 employee paycheck to be created...even if you enter the SEP liability in "Other Payroll Items" correctly, QB Payroll will not save the SEP liability for a $0 paycheck, so a check can't be cut to pay the SEP firm... Also, if you enter employee wages to equal the planned SEP contribution, Payroll adds those to employee's wages / W-2, that gets taxed which is incorrect since SEP isn't supposed to be taxed when contributed...

Here's what works (and super simple each year after the initial SEP "payroll" item set-up):

One time set-up:

1. Set up SEP "payroll" item:  Lists / Payroll item list / Payroll item / New / EZ Setup / Retirement Benefits / 408K SEP / (enter Payee name / acct info, select "I don't need regular pyt schedule"), Finish. In Payroll Item List, you should now see an item called 408K Sep Co. Match, which you can rename if preferred for easier recognition later. You can edit this item to enter % "match" or a limit if preferred. 

Ongoing steps (repeat annually or as needed):

2. Create (annual) SEP "payroll" liability for "employee": Payroll Center / Payroll / Pay Liabilities / Adjust Payroll Liabilities / (enter date / effective date... I usually use Dec 31 so I know where to look for this item each year if I need to backtrack to figure out how to recreate it...), Adjustment is for: Company (aka NOT "Employee" as in this case, this is a 100% COMPANY paid SEP contribution), Item Name (search list for the name of the item created in Step 1 above), Amount (enter amount of company SEP contribution), Memo (optional - add notes as needed re: the SEP contribution - you can note "employee" name there if you're making SEP contributions for more than one person), then click "OK" button

3. Create / cut SEP check: Lists / Chart of Accounts / (select the checking acct from which the SEP $$ are to be withdrawn), Date (I usually enter 12/31 per above), Payee (name of your SEP provider), Payment (enter same amount as from Step 2 above), Account (Payroll Liability), double click on the just created entry, Print, Check

Replacement step if you don't have a payroll / subscribe to QB Payroll (haven't personally tried so no guarantees, but it should work): set up a line item in Chart of Accounts for "Payroll Liability", use that Payroll Liability "account" to enter the SEP liability (replacing QB Payroll SEP liability entry per Step 2 above) - Enter date, Account = Payroll Expenses, Memo (specify it's SEP contribution), Increase = SEP contribution amount. This liability will get offset when you cut the check at Step 3

There's apparently an even easier way that combines Step 2 into Step 3 per my accountant, but I prefer to be able to map back to SEP via both payroll app and chart of accounts...

Hope this helps others avoid wasted time / frustration

Thanks for taking the time to share this Lisa - exactly what I was desperately searching for!

Thank you.. Creating a Trust Account worked.  This type an account shows a positive Balance.  Creating a Liability account only serves to create a negative Liability.