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dh581
November 9, 2023
Question

Employee Simple IRA deductions not found

  • November 9, 2023
  • 2 replies
  • 0 views

Hi, 

My employer set up Simple IRA deductions in my payroll on QB in June. He set it so that I am contributing a % of my paycheck and the company is matching up to 3%. The employer uses Wells Fargo banking. Wells Fargo failed to set up a Simple Account for me (the employee) but my paycheck still shows 'IRA Deductions' and has been doing so for months. So, my paychecks have been deducted from but I have not received any IRA contributions into my account because my Wells Fargo IRA account was never properly set up and was then closed. My employer doesn't know where those funds are or have gone. Does QB direct deposit employee retirement funds to a specific account or is that the responsibility of the bank (Wells Fargo in our case)? Is it possible that my employer simply reduced my paycheck amount by inputting an 'IRA deduction' but never directly deposited the amounts from the company bank account (Wells Fargo)? How can we find the contributions or resolve/fix this?

2 replies

MJoy_D
MJoy_D
November 9, 2023

Thank you for posting here in the Community, @dh581. 

 

To resolve this issue, I suggest you reach out to your employer and ask them to reach out to Wells Fargo and inquire about the status of your IRA account and any contributions that may have been made to that bank account. 

 

You can also provide this article to your employer on how to remove a retirement plan item from your payroll in QuickBooks Online (QBO): Set up a retirement plan. 

 

Let me know if you have further questions. I'm always here to answer them for you. Have a wonderful day!

Rainflurry
Rainflurry
November 10, 2023

@dh581 

 

"My employer doesn't know where those funds are or have gone. Does QB direct deposit employee retirement funds to a specific account or is that the responsibility of the bank (Wells Fargo in our case)? Is it possible that my employer simply reduced my paycheck amount by inputting an 'IRA deduction' but never directly deposited the amounts from the company bank account (Wells Fargo)? How can we find the contributions or resolve/fix this?"

 

It is 100% your employer's responsibility to make sure the deduction gets into your IRA account.  Wells Fargo has nothing to do with it.  QB payroll puts that deduction into a liability account in the company's books.  Then, your employer is responsible to make the contribution to the Wells Fargo IRA.  When that happens, the cash comes out of your employer's bank account and it reduces their liability.  If they don't know where the funds are, they need to find out.  As a former owner of multiple businesses with over 50 employees, this is not difficult.  That money is either sitting in your employer's bank account (with a corresponding amount showing as a liability on their books) or it was paid out.  If it was paid out, the company's books will show the payment made.  Those are the two options.  If your employer is telling you they do not know where the funds are or have gone, they're dodging the question as this is very easy to determine.      

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