Question

Roth Simple IRA payroll plan deduction setup

Forum|Forum|1 year ago
October 29, 2024
6 replies
42 views

Is there going to be an update to the QuickBooks desktop payroll software to add a Roth Simple IRA plan deduction starting January 1,2025?

QuickBooks Desktop Payroll

J

JorgetteG

QuickBooks Team

Thank you for reaching out regarding the Roth SIMPLE IRA payroll plan deduction setup, Lon4.

QuickBooks has yet to officially announce its plan to include a Roth SIMPLE IRA plan deduction for January 1, 2025.

Currently, QuickBooks Desktop Payroll supports setting up SIMPLE IRA contributions, but due to IRS regulations, it does not support Roth SIMPLE IRA contributions.

While we're unable to provide a specific timeline for implementing this in QuickBooks Desktop, please be assured that we are committed to complying with the IRS regulations, and the necessary changes will automatically reflect in the system.

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

We appreciate your proactive approach to staying updated with payroll features. 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.

C

cwsd13

This is a pathetic answer. We have payed double for quickbooks services in the last 1-2 years and now it's not even up to date.

J

jerryboda

The IRS has already established guidelines and retirement companies that custody ROTH SIMPLE IRA plans have sent us adoption agreements to use this plan. INTUIT PAYROLL is way behind on this. I have already had all my employees sign up for the plan so if it's not ready by INTUIT by Jan 1, 2025, you have literally put me as an employer in a very tough situation. I have been sending emails and providing feedback using the online Intuit program and have yet to get one reply to my inquiries for over 5 months. I found this thread by doing a google search as I am so frustrated as a user for decades.

C

Conchovall

Same here been sending everything they had suggested since October and not a thing has been done. Expect more from intuit. Kind of there job to be on top of this kind of stuff not just have bots telling us it cant be done or is in the works and they will get it done asap.

B

BB115

We are also in the same boat. Still waiting on Intuit and QBs to make the necessary updates to allow for Roth Simple IRA deferrals. We are now running payroll in 2025 and still can't take advantage of the deferral laws from a 2022 ACT.

I agree with another poster's sentiment about the rapidly increasing pricing, and similar pace of decline in service. This is absolutely inexcusable.

F

FPTSA

Needing to know when a resolution will happen to let my employees know. I talked to QB yesterday and all I got was "we have not heard about this type of plan" or an autobot reply. Our CPA and brokers have done their part, but I don't have a way to track the taxes in QB payroll. NEED HELP ASAP!

C

carterbro

Apparently still not fixed and it's February of 2025. Was driving myself nuts trying to figure it out and my call to support was no help.

AlverMarkT

Moderator

I'll hear you out, @carterbro. I understand your concern regarding the Roth Simple IRA payroll plan deduction support in QuickBooks Desktop (QBDT) Payroll. As of posting, there isn't a specific timeframe for when this feature will be available. In the meantime, I'm here to provide more details and share some options on how you can manage this.

While this retirement plan isn't supported in QBDT Payroll yet, I recommend maintaining a separate record to manually track Roth Simple IRA contributions, and collaborate with your accountant to create the necessary entries in the software to reflect these wages.

You can also consult your accountant to explore the possibility of creating a payroll deduction item and choosing its correct tax-tracking type. I'm adding this article as a guide: Set up, change, or delete employee-paid payroll deductions.

It's essential that the software accommodates various business needs, especially about supporting Roth SIMPLE IRA . Therefore, I encourage sending your feedback to our Product Engineers.

Select the Help option.
Choose the Send Feedback Online option.
Click on the Product Suggestion option.
Enter your feedback suggestion.
Click the Send Feedback button.

I hope the information I've shared helps you manage accurately Roth SIMPLE IRA contributions until the feature is available in QBDT. If you have further questions in the meantime, feel free to click on the Reply button. We're committed to offering ongoing support.

T

TCG 12

As a temporary workaround while QuickBooks gets their act together, could we simply set it up as a "Roth 401(k)) and just make sure the contributions do not exceed the SIMPLE IRA limits? It would seem this would work from a tax standpoint for the employees end of year W-2 form.

J

jeremy77

Is this a possible workaround? Setup another deduction, name it Simple Roth, select "Simple IRA" as tax tracking type, but then uncheck all the taxes that get affected. Both Simple and Simple Roth report to box 12 on the W2 as code S. The only question then seems to be would it still reduce wages in box 1, even though you uncheck not to affect any taxes?

Z

ZackE_

Moderator

Thanks for joining this thread, jeremy77.

To properly identify if your proposed workaround works for your business, I'd recommend working with a tax professional.

If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

I've also included a detailed resource about working with retirement plans which may come in handy moving forward: Set up or change a retirement plan

Please don't hesitate to send a reply if there's any additional questions. Have a wonderful Tuesday!

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