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joe86
March 18, 2020
Question

How do I set up paying our companys 3% Simple IRA match to pay out monthly and not one big payment at the end of the year?

  • March 18, 2020
  • 13 replies
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13 replies

Kendra H
March 18, 2020

Thanks for posting your question here, joe86. 

 

Once you setup your Simple IRA  payroll item, it'll automatically set up your accounts for you. 

 

Below, are the steps to set up your benefits using the EZ Setup in QuickBooks Desktop: 

  1. Hover over Lists and select Payroll Item List in the top menu. 
  2. In the lower-left of the Payroll Item List, choose Payroll Item. 
  3. Click on New and then go to EZ Setup. 
  4. Pick Next and follow the instructions. 
  5. Once you've created that payroll item, edit the payroll item to make sure all necessary vendor information has been entered. 

For more detailed instructions with setting up a payroll item in QuickBooks Desktop, you can refer back to this article: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.). 

 

Let me know if the steps above do the trick. If you have any more questions, I'm always here to help. 

SusieQStL
January 5, 2021

specifically what are the settings in the Simple IRA Co. Match payroll item?

Thanks,

Susan

MirriamM
January 5, 2021

Welcome to the thread, SusieQStL.

 

Let me show you how to set up Simple IRA in QuickBooks Desktop in a few clicks. Here's how:

  1. Go to the Lists menu at the top.
  2. Select the Payroll Item List.
  3. Tap on the Payroll Item drop-down arrow, then click New.
  4. Pick Custom Setup (allows editing of all settings; recommended for expert users) radio button and hit on Next.
  5. Select Deduction and select Next.
  6. Enter the name of the payroll item and click Next.
  7. Select an agency, enter the number that identifies you, and click Next.
  8. Choose a tax tracking type and click on Next until you reach the Calculate based on quantity window.
  9. Select Neither and click Next.
  10. Enter the percentage in the Default rate and limit window and click on Finish.

When selecting the Tax tracking type, this is how your Simple IRA Co. Match is reported:

  • 941 or 944: Not included in wages in lines 2, 5a, 5c or lines 1, 4a, 4c.
  • 940: Increases wages in line 3, increases exempt payments in line 4, and box 4c is checked.
  • W-2: Not included in wages boxes 1,3 5, and Retirement Plan is checked in box 13.

If None is selected, the Simple IRA Co. Match isn't reported to any forms. Thus, I recommend consulting your accountant to verify if it's the right thing to do. 

 

As a reference, you can refer to this article for further guidance: Set up or change a retirement plan.

 

If you have further questions, feel free to leave a comment below. I'll be around to help. Have a good one.

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