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Art11_2
January 24, 2024
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For a Payroll Deduction IRA (i.e., an employee's personal IRA), do I setup a deduction, or just split their direct deposit? I don't see a deduction that matches this.

  • January 24, 2024
  • 1 reply
  • 0 views
I tried to add a new Deduction, but didn't see a way to deposit the money to the employee's IRA. I assume splitting the direct deposit is the way to go.
IRS description of Payroll Deduction IRAs: https://www.irs.gov/retirement-plans/plan-sponsor/payroll-deduction-ira
Best answer by Kurt_M
Thanks for getting back here in the thread, @Art11_2. We'll help you address the situation and deal with your employee's personal IRA inside QuickBooks Online (QBO).
 
Since your employee has their own IRA set up, you're right. Splitting the direct deposit would do the trick in funding your employee's personal IRA. We'll gladly write down the steps to help you set it up in your employee's profile:
 
  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Payment method, select Start or Edit.
  4. From the Payment method ▼ dropdown, select Direct deposit.
  5. Choose a Direct deposit method (Splits can be done as a dollar amount or as a percentage.):
  • Direct deposit to one account
  • Direct deposit to two accounts
  • Direct deposit with balance as a check

 

For more details, please see this page: Set up direct deposit for employees.
 
We also got these articles to help you manage employee information, and ensure your data stays accurate inside QBO:
 

 

It's been a pleasure to have you here today, @Art11_2. Don't hesitate to visit us anytime if you need further assistance managing employees inside QuickBooks. We'll make sure to help you out again. Keep safe.

1 reply

Nicole_N
Nicole_N
January 24, 2024

Hi, @Art11_2. Let me route you to the right support to address your needs.

 

What specific IRA are you trying to set up? Knowing this would help me provide you with accurate information. For now, I suggest reaching out to our Payroll Support team. They are equipped with the necessary tools to pull up your account securely and help you with setting up the payroll deduction.

 

Here's how to contact them: 

 

  1. Go to the Help icon in the top right-hand corner.
  2. Select Search, then press the Contact Us button.
  3. Enter your question in the box and hit Continue.
  4. Choose the best way you'll want to reach out to us.

 

Make sure to review their support hours so you'll know when agents are available. 

 

You might also want to check this link to learn more about setting up Simple IRA in QBO: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).


Let me know if you have any concerns about IRA contributions. I'll be right here to help.

A
Art11_2Author
January 24, 2024

Thanks @Nicole_N.  The help only mentions how to fund IRAs that are created by the employer. In my case, the employee has already created this personal IRA on their own, with no connection to our business. They would like us to make direct deposits into this personal IRA that they have already setup.

K
Kurt_MAnswer
January 25, 2024
Thanks for getting back here in the thread, @Art11_2. We'll help you address the situation and deal with your employee's personal IRA inside QuickBooks Online (QBO).
 
Since your employee has their own IRA set up, you're right. Splitting the direct deposit would do the trick in funding your employee's personal IRA. We'll gladly write down the steps to help you set it up in your employee's profile:
 
  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Payment method, select Start or Edit.
  4. From the Payment method ▼ dropdown, select Direct deposit.
  5. Choose a Direct deposit method (Splits can be done as a dollar amount or as a percentage.):
  • Direct deposit to one account
  • Direct deposit to two accounts
  • Direct deposit with balance as a check

 

For more details, please see this page: Set up direct deposit for employees.
 
We also got these articles to help you manage employee information, and ensure your data stays accurate inside QBO:
 

 

It's been a pleasure to have you here today, @Art11_2. Don't hesitate to visit us anytime if you need further assistance managing employees inside QuickBooks. We'll make sure to help you out again. Keep safe.
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