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C
cfedewa
February 1, 2024
Question

Calculation of state wages is including company contribution to SIMPLE IRA

  • February 1, 2024
  • 1 reply
  • 0 views

Doing W-2s (state of Michigan) QB is adding the companies SIMPLE match to the state wages.

Box 1 is correct and doesn't match the state wages. The payroll item my client setup has checked the FWH and State Withholding for the tax calculation.  Why is the state not correct but the federal wages are?

If I changes the calculation to nothing checked will the program change/correct the state wages? It didn't ask.

The programs want the state withholding checked??Am i going to have to override the state wages for the W-2s?  Its the company match and shouldn't be used in any calculation - best of my knowledge.

1 reply

BigRedConsulting
BigRedConsulting
February 1, 2024

That suggests that the company contribution item was set up with the SIMPLE IRA tax tracking type, or that it otherwise impacts the tax. It shouldn't impact any taxes.

C
cfedewaAuthor
February 3, 2024

The response didn't address all my questions. The item was setup as the "company contribution" and I assume my client checked the federal and state withholding. When i checked the use defaults it wanted to use the state withholding as explained in my post. I overrode the state wages calculations on the W-2s with issues.  The employees that were correct there was nothing checked in the item "Company Contribution".

Thank you very much for taking the time to respond to my post, i greatly appreciate that you took the time to assist me with this issue.

Gratefully

Carl

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