SIMPLE IRA doesn't calculate at 3% of gross correctly when dental health and medical are deducted

I would recommend reading this thread…the IRS rule (see the thread) - Gross Income for purposes of the calculation is explicitly after deduction of Section 125 healthcare premiums.

​@tsnyder16 

Hi Tammy!

So is there anyway around this? Previously the tax engine only needed adjusting on the employer contribution side (which was fine because it didnt effect the net pay. but now both will need to be adjusted and i cant do that until after i release the paychecks. 

Can i set up custom deduction benefit code? Has anyone else found a work around for this? 

Also, when i click save override, it will not accept it (like it was doing before)

Thanks!

Actually.. i think i may have found something.. If i change the calculation method on the IRA codes from percent of gross to fixed amount (default it to $1.00 to trigger manual override) I can input the employee contribution in the employee settings.. then I would just have to do an adjustment paycheck to increase the employer contribution. 

Thoughts?  

Actually, I think you are missing the point...the IRS states that the gross amount for Simple IRA should NOT include pretax values, which is why Symmetry calculates the % off a gross amount without those pretax amounts.  

​@Slandreth211 

Thank you! I appreciate your explaination! 

One more question… If the employer contribution is supposed to match.. is it against the IRS rules to adjust the employer contribution to match the employee deduction ?

​@stacy16 - no, you can make the EmployeR contribution anything you want, the system will cut it off when it reaches its limit, Symmetry is smart enough to know when that is.  This is why it is important to check the box if the employee is over 50.  When you set a retirement deduction/benefit on the employee you will notice that it give the sequence “0” that is because it should always be first.

Another thing to note - Acumatica is setup that if an employee has both an IRA and a 401K the system knows what the maximum the employee can contribute and takes them both into consideration, this is to protect the employee and the employer.

​@Slandreth211 Awesome! 

Thank you so much! :)