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amanda-armofcare
January 3, 2021
Solved

How do I add CalSavers - State mandated retirement plan?

  • January 3, 2021
  • 3 replies
  • 0 views
Original commenter did not share additional details
Best answer by JenoP

Hi there, bdaba.

 

There's no specific pre-set up deduction item for Roth IRA. However, you can select or use the Other after tax deductions and name it Roth IRA.

 

Here's how:  

 

  1. Go back to the employee's profile and proceed to the section where you can add payroll items.
  2. Select Deduction/contribution in the first line, then select New deduction/contribution in the second one.
  3. Click Other deductions, then select Other after tax deductions for Type. 
  4. Type in the name of the deduction and any other details.
  5. Click OK. 

 

I'd also like to share this article for additional reference: Add or change pay types. 

 

You can always count on us if you ever need help with QuickBooks. We're always here to assist you.

3 replies

S
SarahannC
January 3, 2021

Hello there, amanda-armofcare.

 

In QuickBooks Online, you'll only need to follow these steps to add a retirement plan mandated by your state. Here's how:

 

  1. Go Payroll on the left panel.
  2. Within the Employees tab, select the employee's name.
  3. In the Pay section, select the pencil icon. Then, scroll down on the deductions section.
  4. Then select +Add deductions.
  5. Select Retirement Plans under Deduction/Contribution type.
  6. Then select the type of Retirement plan.
  7. Enter the name of the provider and  the amounts per pay period.
  8. Click Done when ready.

 

If you want to run payroll reports in QuickBooks Online, you can check these articles for additional guide:

 

 

Please visit again if you have other questions. I'm right here to help anytime. Take care and stay safe always.

B
bdaba
March 31, 2021

There is NO OPTION for Roth IRA or if you choose "other deduction" you are not able to choose "after-tax" option which is what is needed. This seems to be a major problem. Anyone know a solution??

    JenoP
    JenoPAnswer
    March 31, 2021

    Hi there, bdaba.

     

    There's no specific pre-set up deduction item for Roth IRA. However, you can select or use the Other after tax deductions and name it Roth IRA.

     

    Here's how:  

     

    1. Go back to the employee's profile and proceed to the section where you can add payroll items.
    2. Select Deduction/contribution in the first line, then select New deduction/contribution in the second one.
    3. Click Other deductions, then select Other after tax deductions for Type. 
    4. Type in the name of the deduction and any other details.
    5. Click OK. 

     

    I'd also like to share this article for additional reference: Add or change pay types. 

     

    You can always count on us if you ever need help with QuickBooks. We're always here to assist you.

    C
    Carolina1947
    May 13, 2022

    Hello Amanda;

     

    I had the same problem, but after searching for information regarding the type of retirement plan CalSavers offers it came out to be post-tax basis and tax free. Then I search for the types of Roth Retirement Plans and their description, the best results to set-up in QuickBooks was Roth 403(b) and once prompt to choose if the deduction is Gross or Net I choose net.

     

    This is what I came up with after searching, however there is not a lot of information regarding the exact retirement plan CalSavers uses.

     

    What type of retirement plans are available? CalSavers is available as a Roth individual retirement account (IRA). This means that employees contribute to the program via payroll deductions on a post-tax basis, but when they retire, their income from the savings account is generally tax free.  (https://www.adp.com/resources/articles-and-insights/articles/w/what-is-calsavers.aspx#:~:text=What%20type%20of%20retirement%20plans,account%20is%20generally%20tax%20free.)

     

    Roth 403(b) option offers tax-free retirement income. Page 1. An additional way to save in your plan. Unlike a traditional pretax 403(b), the Roth 403(b) allows you to contribute after-tax dollars and then withdraw tax-free dollars from your account when you retire. (https://www.google.com/search?q=what+is+roth+403(b)&rlz=1C1CHBF_enUS983US983&oq=what+is+roth+403&aqs=chrome.2.69i57j0i512l3j0i22i30l5j0i390.8031j0j7&sourceid=chrome&ie=UTF-8)

    M
    Marc101
    May 13, 2022

    .

    M
    Marc101
    May 13, 2022

    For anyone looking to setup CalSavers & Quickbooks, the article here was the most helpful one I have found:

    https://quickbooks.intuit.com/learn-support/en-us/help-article/payroll-additions-deductions/state-re...

     

    However you will find that the Excel export of the "state-mandated retirement report" that QBO provides (Step 4) is not compatible with what CalSavers requires. You will have to export the report and then manually update it to fit the CalSavers template. QBO if you are going to create the report, why not make it work?! So frustrating. 

      U
      user57
      November 22, 2022

      Quickbooks x CalSavers

       

      I have spoken to two Quickbooks reps on the phone as of November 2022. Here's what they say about Quickbooks integration with CalSavers: Quickbooks does not support sending out employee contributions to the CalSavers site, you have to do it manually. If you have enrolled Quickbooks as a payroll provider, remove them first before you can process the contributions. 

       

      Helpful link:

      Set up state-mandated retirement plans in QuickBooks Payroll:Go to step 3 for the actual instructions 

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