Hi there,
The Simple IRA item is supposed to be calculated after a Prem 125 item is deducted from the gross pay. As per IRS (https://www.irs.gov/retirement-plans/simple-ira-plan-faqs-compensation), "Compensation doesn’t include amounts deferred under a section 125 cafeteria plan".
In Quickbooks, when a Simple IRA item is set up to calculate on a percentage, it calculates directly from the gross pay even if there's a Prem 125 item.
You'll want to reach out to our Payroll Specialist so they can further check your payroll setup. The new "Help" menu interface:
- Click the (?) Help icon and choose the Talk to a human option (then type it again when prompted).
- When asked by the bot, type "Simple IRA Calculation."
- Select I still need a human.
- Proceed with Contact us.
- Click Let’s talk then choose either Get a call or Start messaging.
For the old "Help" menu:
- Click the Help icon and click the Contact Us button.
- Type "Simple IRA Calculation" in the What can we help you with box.
- Proceed with the Let's talk button.
- Select either Start messaging or Get a call button.
Also, you'll want to check this article about supported pay types and deductions: Supported pay types and deductions explained.
Post again here if you have more questions. I'll be here!
