Employees and payroll
You can set up a new retirement plan to obtain an additional 10% of the existing limit in QuickBooks Online, @KH-19. I'm happy to provide further details about this below.
Currently, you can set up a higher limit for a retirement plan, with the limits for SIMPLE 401(k) and SIMPLE IRA plans, including their catch-up contributions. Here's how:
- Go to Payroll, then Employees.
- Select your employee.
- Click Edit from Deductions & contributions.
- Pick + Add deduction/contribution.
- Select Retirement Plans in the Deduction/contribution type▼ dropdown.
- For Type, choose the applicable retirement plan.
- Enter the name of the provider or plan in Description (appears on paycheck).
- Complete the remaining fields. Then, select Save and Done.
If you want to include the employer contribution or company match, you can add it under Company Contribution. Then, select the dropdown menu to choose how you want to calculate the amount. Complete the new fields to enter the amount or percentage per paycheck and the annual maximum.
After that, you can use the newly set up retirement plan for your upcoming pay runs. If you're unsure when to exactly use it, I suggest consulting your tax advisor to ensure that your books are accurate and to avoid messing up your payroll data.
Moreover, check out this resource to review upcoming changes and new offerings about retirement plans: SECURE Act 2.0: Small business owner guide and key retirement changes.
Additionally, you can visit this article to provide a detailed breakdown of your employees' wages, deductions, and tax information for a specific period: Run payroll reports.
I'm always around to lend a hand if you need more help managing your retirement plans or with anything else related to QuickBooks. Take care and have a great day!
