When I run payroll, the Simple IRA employee deduction calculates incorrectly. Rather than being a percentage of gross pay, it's factoring in pre-tax deductions first.

We can verify the Simple IRA setup, hburgnm.

SIMPLE IRA plans are tax-deferred. This means that deducted amounts are exempt from federal and state income tax withholding when processed through payroll. However, they're still subject to social security and Medicare taxes. Amounts withdrawn from these plans after retirement are subject to income taxes.

To review the setup to an employee, you can follow these steps:

1. Select the Workers or Payroll menu, then select Employees.
2. Click the employee's name.
3. Select the pencil icon in the Pay section. Scroll down on the deductions section. Then select the pencil icon for Simple IRA. 
4. Review if Retirement Plans is selected under the Deduction/Contribution type.

Then, we can sign out and sign back in to refresh QuickBooks. After that, recreate the paycheck to see if Simple IRA is correctly calculated. You can also click this link for more details about retirement plan deductions and contributions in QuickBooks Online Payroll.

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