Skip to main content
S
Sage1971
June 17, 2024
Question

How to transfer money to employees SEP IRA

  • June 17, 2024
  • 1 reply
  • 0 views

I know how to set  up the SEP IRA deduction so that it shows up on my employees paycheck but the money never gets transferred into their SEP account. How do I set that up. I looked under direct deposit but only checking & savings show up.

1 reply

I
Ivan_G
June 17, 2024

Thanks for posting your concern here on the Community, Sage1971. I'm here to help you and explain how we can handle the SEP-IRA payments in QuickBooks Online (QBO).

 

Processing of direct deposit for nontax payments is not an option in QBO. Alternatively, you may maximize the Bill Pay feature to pay the amount online if your SEP-IRA provider accepts online bill payments. It's subject to eligibility, which can help you handle your expenses electronically. If not, you may facilitate the transfer outside of QuickBooks.

 

Following that, we can enter the transaction as a check inside QBO for tracking and recording purposes. Here's how:

 

  1. Go to the + New menu and select Check.
  2. Pick or add your SEP IRA provider (Vendor) from the Payee dropdown.
  3. Select the Bank Account you've used for this transaction.
  4. From the Category details section, choose your SEP IRA account in the Category column.
  5. Fill in the necessary information on the form.
  6. Double-check everything. Then, and once done, hit Save and close.

 

In addition, you may also pay and file your payroll taxes and forms using QuickBooks Online Payroll. It could help you save time by handling them electronically in the system.

 

I'm still available to lend a hand. If you have follow-up questions regarding your taxed or nontaxable deductions or payments in QuickBooks, please add a reply to this thread. Have a good one.

S
Sage1971Author
June 17, 2024

Thanks Ian, I already  have the account set up but my problem is how do I have QB automatically transfer the money to my employees retirement account which is housed outside of QB. I have the routing & account number. I looked at the link but all that info is about paying sales tax, 940, 941 ect...

So where do I go to add the routing and account number for their retirement account so that it automatically gets transfered to their account??

 

thanks!

A
Anonymous
June 17, 2024

Thanks for getting back to this thread, @Sage1971. I can share some information on how paying for the retirement of your employees works in QuickBooks Online.

 

To achieve this, we will need to create a liability check outside of QuickBooks to pay your employees' retirement accounts, as this cannot be done within QuickBooks. Subsequently, the payment can be manually recorded inside QuickBooks for documentation purposes.

 

Here's how:

 

  1. Sign in to your QuickBooks Online account.
  2. Click on + New, then select Check.
  3. Choose the Vendor, from the Payee dropdown.
  4. From the Bank Account dropdown, select the account you use for liability payments.
  5. Enter the Payment date and Check no.
  6. In the Category dropdown field, choose the account you use to track your liability payments then type in the amount.
  7. Fill in the rest of the details in the check, then hit Save.

 

For manual recording of payments in QuickBooks Online, transactions can be manually added to account registers, saving time when reviewing the Chart of Accounts.

 

Furthermore, here's an article that may guide you in paying your payroll taxes to avoid penalties due to late payments: Pay and file payroll taxes and forms in Online Payroll.

 

If you need further assistance or any clarifications about managing your SEP-IRA deductions in QBO, please add them below. I'm always here to provide extra information. 

Terms & ConditionsAccessibility statement