Question

Simple IRA Calculations

Forum|Forum|2 years ago
January 24, 2024
2 replies
0 views

I have multiple employees set up under our company SIMPLE IRA, all of which are set up as a percentage of gross pay. When calculating the SIMPLE IRA amounts on the paychecks, it's calculating them on the gross pay AFTER taking out other pre-tax deductions (medical insurance, dental insurance, vision insurance), etc. It should be calculating it as a total of the original gross pay BEFORE any other pre-tax amounts come out. How do I fix this?

QuickBooks Online Payroll

AldritchM

Hi there, @JennyCPS.

Let me make it up to you by making sure your record is accurate.

To ensure the information in your company file is correct, I'd recommend checking how you set up the simple IRA. Here's how:

Go to Payroll, then Employees, and select your employee.
From Deductions & contributions, select Start or Edit.
Select + Add deduction/contribution.
Select Retirement Plans in the Deduction/contribution type▼dropdown.
For Type, select the applicable retirement plan.
- If you need to track a company-only contribution with no employee match, choose Company-only plan.
Enter the name of the provider or plan in Description (appears on paycheck).
Complete the remaining fields.
If you have a company match, under Company contribution, select the dropdown menu to choose how you want to calculate the amount. Complete the new fields to enter the amount or percent per paycheck and annual maximum.
Select Save then Done.

You can check this article for guidance: Set up or change a retirement plan.

If you have more concerns about managing your payroll or banking, don't hesitate to click the reply button. I'm always around to help!

J

JennyCPSAuthor

Everything is set up correctly. I've had 2 different QB team members look at it for me. The first one said they were escalating it to a tier 3 support and I'd receive a call back. That was over 2 weeks ago and nobody ever called back. The 2nd one I was in a chat with for 4 hours this week. He thought it was set up incorrectly so he set up his own on the back end. I ran a test payroll with him on screenshare to see if it fixed it. It was still calculating it the same way incorrectly and when I showed him that through the screenshare, he disconnected the chat and left the screenshare. After a 4 hour chat with no resolution. It's set up correctly. It's just not calculating correctly.

It also has nothing to do with taxes like the last guy thought, because it's still calculating pre-tax, it's just calculating AFTER other pre-tax items are deducted instead of from the actual gross before any other deductions.

Tori B

Thanks for checking back with us, @JennyCPS.

Please know that I've taken note of your last interaction with our support team and will report it accordingly.

For this concern, you'll need to speak with our Payroll Support. Here in the QuickBooks Community we do not obtain the same tools that our live agents have. Our Support Team can securely review your account and screenshare when necessary to determine if this issue will need to be reported to our Engineering Team for investigation.

Since your chat interactions haven't been the best, I recommend scheduling a call back from an agent. Here's how:

Sign in to your QuickBooks Online account.
Go to Help (?).
Tap on Contact Us.
Enter your concern, then select Let's talk.
Choose a way to connect with us:
- Get a callback from the next available expert.

If there is anything else I can assist you with, please don't hesitate to let me know. Take care!

S

swingside

I'm having the same problem!

Two calls to QBO support, and still no resolution. This seems like a simple and obvious flaw that they should be able to fix. "Gross pay" means Gross pay.... not after any other pre-tax deductions!

DivinaMercy_N

I'll share details about this and help you fix the inaccurate calculation, @swingside.

In QuickBooks Payroll, the percentage-based Simple IRAs are calculated on the gross wages minus any pre-tax deduction. Since your having issues regarding the calculation of this payroll item in your account, I recommend checking the setup of this plan to ensure it is added correct. For reference, check out this article: Set up or change a retirement plan.

However, if verified that everything is correct, I highly suggest getting in touch again to our phone support team to further determine the root cause of the problem. I know that you've already contacted them, but please know that they have the specific tools to check your account and perform necessary adjustment if needed. They also have the direct connection with higher support to help resolve it for you.

Additionally, you can run several payroll reports to easily track your employee details, business finances, and payroll taxes.

I'm just around the corner to provide additional assistance if you have any other concerns about the calculation of your retirement plans. Have a good one and stay safe.

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