How can I setup SIMPLE IRA using Payroll Mate?

Question

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?

Answer 1

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

http://www.realtaxtools.com/

support@realtaxtools.com

708-479-8731