Welcome to Payroll and W2 1099 Software Answers ; where you can ask questions and receive answers about payroll software, W2 forms processing, 1099 filing, tax forms, IRS electronic filing and much more.

Contact Us

Real Business Solutions
Live Chat

Real Business Solutions
18313 Distinctive Drive
Orland Park, IL USA 60467

How can I setup SIMPLE IRA using Payroll Mate?

0 votes
This is my first season to use Payroll Mate, and I have the SIMPLE IRA withholding set up to be in Box 12 as Code S and to be federal exempt.  It is putting it in Box 12 of the W-2s, but it is not deducting it from the federal taxable amount on the W-2s or Form 941.  How do I adjust this?
asked in Payroll Software by anonymous

1 Answer

0 votes

Hi there...

This means you did not check the box for “Federal Income Tax” under “Exemptions” when you set this deduction. Here’s a sample setup:

For both Title and Abbreviation enter “SIMPLE IRA”.

Under Calculation select Variable (most common) , but you can change to match your needs.

Make it paid by the “Employee”.

Check the Box next to “Use on Box 12” and enter S for the W-2 Code.

Under Exemptions check the box next to “Federal Income Tax” (most common) and any other tax you might want to make the SIMPLE IRA deduction exempt from. 

Real Business Solutions Support Team, Makers of W2 Mate, 1095 Mate and Payroll Mate





answered by RealBusiness