When managing financial transactions in Pro Software, particularly for retirement plans like Simple IRA, it's crucial to address shortfalls in employer (ER) contributions. This article guides you through creating a deduction to recover a missed ER contribution, ensuring that both employee (EE) and employer portions are correctly accounted for.

Steps/Procedures

1. Identify the Need for a One-Time Transaction: Recognize a situation where an ER contribution was missed. This guide uses a Simple IRA with an ER per pay contribution as an example.

2. Create a New Deduction:

   • Set Dates: Input the current date as the start date and the day after the anticipated payroll as the stop date.
   • Specify Adjustment Type: Choose a 'once only' adjustment for this client-based deduction.
   • Enter Amount: If the normal per-pay-period amount is $36.85, double this to $73.70 to cover both the missed and upcoming contributions.
   • Save the Deduction: Confirm that the deduction starts today and ends the day after the next pay period, with the doubled amount.

3. Set Up Regular Deduction:

   • Start Date: Set this for one day after the final day of the one-time transaction.
   • Open-Ended Stop Date: Leave this blank as it will continue until notified of changes.
   • Enter Regular Amount: Set this to the typical $36.85 per pay period.
   • Save and Review: Ensure the setup correlates with the intended date range and amounts.

Troubleshooting

• Incorrect Amounts: Double-check the amounts entered, especially in cases of overriding for client-specific deductions.
• Date Mismatches: Ensure the start and stop dates align with the payroll cycle to avoid discrepancies.

Related Resources/Links For further information on managing deductions and contributions in Pro Software, please visit the following articles in our Knowledge Base:

• Setting Up Employee Deductions
• Managing Payroll Dates
• Understanding Employer Contributions