Employees and payroll

I'm pleased to welcome you to the Community, Jolder.

To effectively adjust the contribution limit in QuickBooks Online for employees over 50 participating in a Simple IRA, we will set up a new contribution called Simple IRA Catch-up. This approach allows your employees to contribute the additional amount authorized by the IRS without altering the existing contribution limit.

Here's a step-by-step guide to do this:

1. Go to the Payroll tab on the left menu bar, then Employees.
2. Select Edit payroll items.
3. From the New payroll item dropdown, select Deductions & Contributions.
4. Choose the Retirement Plans category and SIMPLE IRA Catch-up as the deduction type, then Create.
5. Click Assign employee(s) to add all qualified employees, then hit Next.
6. Enter the contribution amount or percentage per pay period.
7. Finally, click Save.   

This will update the contribution limit to $19,500 for your employees who qualify for the catch-up contributions.

Additionally, I recommend checking out these articles to help you efficiently manage your deductions and contributions using QuickBooks Payroll:

• Set up or change a retirement plan.
• Set up and manage company contributions.

We're here to assist you with other payroll concerns, including managing payroll deductions, payroll reports, or related matters. Just leave a comment below, and we will promptly assist you.