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apquick123
Level 1

Employer SIMPLE contributions apply to SUTA

We were audited by Illinois and were informed that for calculating SUTA, an employee's wages need to include the employer match 3% contribution with our SIMPLE IRA.  I am unclear how to account for this automatically in QuickBooks.  Can anyone offer some suggestions?  Thanks, Ted.

Solved
Best answer January 30, 2020

Best Answers
JaneD
Moderator

Employer SIMPLE contributions apply to SUTA

Hi there, apquick123.

 

You can set up a company contribution payroll item and add this to your employee's profile. I'll guide you how.

 

  1. From the Edit menu, choose Payroll Item List.
  2. Click on the Payroll Item drop-down arrow and select New.
  3. Select the Custom Setup (allows editing of all settings; recommended for expert users) radio button and click on Next.
  4. Choose Company Contribution (Employer 401(k) matching contribution, HSA contribution) and select Next.
  5. Enter the name of the payroll item and click Next.
  6. Select an agency, enter the number that identifies you, and click Next.
  7. Choose a tax tracking type and click on Next until you reach the Calculate based on quantity window.
  8. Select Neither and click Next.
  9. Enter 3% in the Default rate and limit window and click on Finish.

To add the payroll item to the employee's profile:

 

  1. Go to Employee Center and double-click on the employee's name.
  2. Select Payroll Info.
  3. Choose the payroll item under Additions, Deductions, and Company Contributions.
  4. Click on OK once done.

The following article will provide more information about setting up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

 

The company match payroll item will show up under Other Payroll Items when you run payroll. From there, QuickBooks calculates your payroll taxes automatically and identifies taxes that were not taken out from your previous payroll cycle.

 

If you're trying to apply the company match from the previous year, then create a positive payroll adjustment.

 

In case your State Unemployment Insurance (SUI) rate changed, you can refer to this article on how to change it in QuickBooks: Change State Unemployment Insurance (SUI) rate.

 

Reach out to us if you have further questions. We'll be around. Have a good one.

View solution in original post

3 Comments
JaneD
Moderator

Employer SIMPLE contributions apply to SUTA

Hi there, apquick123.

 

You can set up a company contribution payroll item and add this to your employee's profile. I'll guide you how.

 

  1. From the Edit menu, choose Payroll Item List.
  2. Click on the Payroll Item drop-down arrow and select New.
  3. Select the Custom Setup (allows editing of all settings; recommended for expert users) radio button and click on Next.
  4. Choose Company Contribution (Employer 401(k) matching contribution, HSA contribution) and select Next.
  5. Enter the name of the payroll item and click Next.
  6. Select an agency, enter the number that identifies you, and click Next.
  7. Choose a tax tracking type and click on Next until you reach the Calculate based on quantity window.
  8. Select Neither and click Next.
  9. Enter 3% in the Default rate and limit window and click on Finish.

To add the payroll item to the employee's profile:

 

  1. Go to Employee Center and double-click on the employee's name.
  2. Select Payroll Info.
  3. Choose the payroll item under Additions, Deductions, and Company Contributions.
  4. Click on OK once done.

The following article will provide more information about setting up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

 

The company match payroll item will show up under Other Payroll Items when you run payroll. From there, QuickBooks calculates your payroll taxes automatically and identifies taxes that were not taken out from your previous payroll cycle.

 

If you're trying to apply the company match from the previous year, then create a positive payroll adjustment.

 

In case your State Unemployment Insurance (SUI) rate changed, you can refer to this article on how to change it in QuickBooks: Change State Unemployment Insurance (SUI) rate.

 

Reach out to us if you have further questions. We'll be around. Have a good one.

View solution in original post

katorlando
Level 1

Employer SIMPLE contributions apply to SUTA

did the audit include the amount in the quarter when the matching contribution was actually PAID or when the benefit accrued? wondering what happens if the amount wasn't actually paid until the following year or later?

MaryLurleenM
Moderator

Employer SIMPLE contributions apply to SUTA

Hello there, katorlando,

 

You'll want to contact the Illinois Department of Revenue directly. You can check with them the process of matching these contributions. You can also check if there's an extension because of the recent COVID-19. Visit the IDOR tax website here.

 

Each state has different policies, and IDOR will be able to guide you through the process.

 

Check out these articles for future reference:

Let me know if there's anything else I can help you with.

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