This tutorial shows how to set up a Simple IRA Deduction inside Payroll Mate® software.
SIMPLE IRA plan account is an IRA that follows the same investment, distribution
and rollover rules as traditional IRAs.
https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-simple-ira-plans
Summary of Steps
This is just a summary; please click “Download Tutorial” for detailed instructions with screenshots.
Employee Deduction
- Click → Company from shortcuts
- Click → Deduction Categories
- Click → Add
- Enter Title, Abbreviation, Select Calculation (Percentage is the general method) and Paid by
- Enter default rate for each quarter (fields cannot be blank) and Cutoff as applicable
- Checkmark the W2 Options as applicable
- Click Exemptions and checkmark Federal Income Tax
- Click → OK
Employer Deduction
- Click → Add
- Enter Title, Abbreviation, Select Calculation (Percentage is the general method) and Paid by
- Enter Default rates (can modify at employee level) and Cutoff as applicable
- Do not checkmark taxes under Exemptions
- Click → OK
You will apply the Simple IRA deduction(s) to each employee as needed
- Click → Employees from shortcuts
- Select the employee to edit
- Click → Edit
- The Modify Employee Wizard will open, Click → Next until you reach the Tax Setup page
- Checkmark Retirement Plan under W2 Options
- Click → Next until you reach the Deductions page
- Checkmark the new deduction(s) that need to be applied to this employee
- Click → Next until you reach the end of the wizard
- Click → Finish