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J
JThouron
May 10, 2021
Question

How to manually pay a SIMPLE IRA

  • May 10, 2021
  • 3 replies
  • 0 views

Greetings,

 

I am using Quickbooks Online. I am trying to pay my employee's SIMPLE IRA contribution to their financial institution. How do I do this? I've already set up employee accounts to deduct from payroll. I just need to pay the liability now. How to I create a bill that reduces the liability?

 

Thank you!

3 replies

katherinejoyceO
katherinejoyceO
May 10, 2021

Thanks for choosing QuickBooks Online for your business, @JThouron. Glad to know you've already set up the employee accounts to deduct from payroll. 

 

You can pay your employee's SIMPLE IRA contribution directly to their financial institution. Then, record the payment you've made in QuickBooks by creating a journal entry. Here's how:

 

  1. Select the + New menu, then select Journal entry.
  2. Select an account from the Account field on the first line, then enter the amount in the correct column. 
  3. On the next line, select the other account you're moving money to or from, then enter the amount in the correct column. 
  4. Ensure that you have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
  5. Enter information in the memo section so you know why you made the journal entry, then select Save and close.

 

Please know that journal entries require an understanding of debits and credits. I'd recommend reaching out to your accountant if you have specific questions about your Chart of Accounts. You can also find a ProAdvisor if you don't have one yet. 

 

For more insights, read through this article to learn about retirement plan deductions/contributions in QuickBooks. 

 

Visit again if you have additional concerns. I'd be here to be your guide. 

 

 

M
mathieug872
May 1, 2023

Hello!

How would I manually pay a Simple IRA using the Quickbooks Desktop version?  Can I set this up using automatic Bill Pay or would I have to write a check?

 

Thanks in advance!

LieraMarie_A
LieraMarie_A
May 1, 2023

Hey there, @mathieug872. 

 

We're here to help you pay your Simple IRA plan in QuickBooks Desktop.

 

We have to manually create a check to pay the contribution for the Simple IRA plan and then send it to their financial institution. First, let's create a payroll schedule for Simple IRA to help you keep track of when they’re due.

 

Here's how:

 

  1. Go to the Employees menu, then Payroll Center.
  2. Select the Pay Liabilities tab.
  3. Under Other Activities, click Change or Manage Payment Methods.
  4. Select Benefit & Other Payments, then Schedule Payments.
  5. Under the Benefits and Other payments column, select the benefit or liability you want to set up a schedule for. Then select Edit.
  6.  Select the Payee (Vendor).  
  7. Enter the Account Number. Then select the Payment Frequency.
  8. Select Finish to close the window.

 

Then, follow these steps to pay a scheduled liability:

 

  1. Go to Employees, select Payroll Taxes & Liabilities, then select Pay Scheduled Liability.
  2. In the Pay Taxes & Other Liabilities window, select the tax or other liability you want to pay from the list. Then select View/Pay.
  3. Review the dates and the amounts due. 
  4. Select Save and close.

 

If you need to create a custom payment, refer to this article for the detailed steps: Pay Your Non-Tax Liabilities.

 

I'm also adding these resources to determine which plan you want to set up for your employees and review its contribution limits:

 

 

Visit us again if you have other concerns about tax payments. We're here to help and are committed to providing you with the support you need. Have a great day!

katherinejoyceO
katherinejoyceO
May 11, 2021

Hi JThouron,

 

Hope you’re doing great. I wanted to see how everything is going about the concern you had yesterday about recording the SIMPLE IRA contributions in QuickBooks. Was it resolved?

 

Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

 

Looking forward to your reply. Have a pleasant day ahead!

J
JThouronAuthor
May 13, 2021

Greetings again,

 

Thank you for your response!

 

If I needed to print a check, how do I start the process from there? Do I just select the SIMPLE IRA liability acct?

 

Thank you :)

T
TirzahC
May 13, 2021

It's great to hear again from you, JThouron.

 

I'd like to share additional information on how to print check with liability account.

 

Here's how:

  1. Go the Plus Icon.
  2. Select Check.
  3. Go to the Bank Account drop-down, choose the account you use for liability payments.
  4. On the Choose a payee drop-down, select the vendor.
  5. In the Account details section, select the account you use for tracking your liability payments then enter the amount.
    1. Go to Workers.
    2. Choose Employees.
    3. Select Payroll Setup.
    4. Choose Accounting
    5. Under the Tax Liability Accounts, you will see your current liability preferences.
  6. If you have sub-accounts for each agency you are paying, make sure to point to those specific accounts and enter the appropriate amount for the agency.
  7. Click Print Check.

For more insights, read through this article to learn about retirement plan deductions/contributions in QuickBooks. 

 

Let me know how it works on your end. I'm always here to help you.

M
mathieug872
May 1, 2023

How would I manually pay a Simple IRA using Quickbooks Desktop?  Can I set this up using Bill Pay or would I have to write a check?

 

Thanks in advance!

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