Skip to content
logo Knowledgebase

How to set up a SIMPLE retirement plan

Created on  | Last modified on 

Summary

How to set up a SIMPLE retirement plan in Sage 50 Accounting.

Resolution

CAUTION: Use caution when working with the below product functionality. Always create a backup of your data before proceeding with advanced solutions. If necessary, seek the assistance of a qualified Sage business partner, network administrator, or Sage customer support analyst.

 

We present these steps as examples only. Consult with your CPA before making these changes, to make sure they meet your business needs.

 NOTE: This article assumes you have already setup your General Ledger Accounts and employees. Do an initial General Ledger Account and initial Payroll Setup before following these steps. 

Since any of the following steps will change your company-related information, be sure to create a backup before continuing.

 

Company setup

  1. Select Maintain, Payroll, Payroll Settings.
  2. Select Benefits, Summary of Benefits.
  3. Select Add Another Benefit Retirement Plan. Click OK.
  4. On the Retirement Plans window, select SIMPLE.
  5. Answer the question "Who contributes money to this plan?". Click Next.
  6. Select what the Company contributions are based on and the percentages or amount. Click Next.
  7. Select which taxes are Pre-tax or Taxable for the Employee contribution. Click Next.
  8. Select which taxes are Taxable or Non-taxable for the Company contribution. Click Next.
  9. On the GL Accounts - Employee window, select the appropriate GL account to track employee contributions. Click Next.
  10. On the GL Accounts - Company window, select the appropriate GL account to track Company contributions. Click Next.
  11. On the Summary of Benefits window, verify the settings. Click Finish.

 

Employee Setup

  1. Select Maintain, Employee & Sales Reps, and select an employee.
  2. Select the tab WIthholding Info, and enter the percentage to withhold for Simple.
  3. If you require catch-up, enter Yes under the column Catch Up.