We use Quickbooks Desktop Payroll. We have a Simple IRA, and we have a payroll item for the employee deduction. The contribution limit is set in that payroll item, and we update it annually. We have a couple of employees in the 50+ age bracket, who want to take advantage of catch-up contributions to contribute more than the annual maximum for those under 50.
To accommodate this, I assume we need to have an additional payroll item for the catch-up contributions. Is that correct? Do we set the maximum in that new payroll item to the combined total for regular + catch-up contributions and use that new payroll item all year for the folks in the 50+ group? Or is there a better way to handle this?
