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how to set up employer matching contribution to a simple IRA

The1CPA
Level 1

In the batch payroll module, I've set up the debit and credit accounts, periods, w/h field and the matching percent.  The system is taking the matching percent, in this case 3%, times the amount the employee had withheld to arrive at the employer matching amount.  It's my understanding that the matching amount in this case should be 3% of gross pay instead of 3% of the employee's contribution amount.  (Monthly pay period)

With the biweekly payrolls, the system does not calculate any employer contribution even though the employee's are contributing more than 3% of their gross pay.

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3 Comments 3
Only4Me
Level 3

You put the amount in the Employee's account under the "Contrib/Deductions" tab.  You can put a percentage or an amount and it will figure it per pay period from Gross pay.

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The1CPA
Level 1

I set it up as you suggested and it still computes the matching amount at 3 percent of the employee's contribution instead of 3% of the gross pay.

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Only4Me
Level 3
Spoiler
Your GP Field needs to be set to their correct pay account under the contribution tab.  Without me being able to look at your set-up, it's hard for me to tell what you have incorrect.  I don't know why my response says "Spoiler"...weird
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