Solved: Is anyone in Illinois using Square Payroll and fil...

vhovar · ‎01-08-2021

Illinois enacted a required retirement savings plan for smaller employers in 2019. This requires an employer to deduct a percentage of the gross pay and send it to the State to be put in a Roth IRA for that employee. While Square Payroll does allow the inclusion of a Benefit/Withholding to be created using a percentage it only calculates off of the net pay amount. How is this being accomplished for other Illinois Square Payroll employers?

vhovar · ‎09-08-2023

@bensmith4188
Yes, I recently brought it up again and received the following:

"Use the Roth IRA benefit type to withhold contributions from employees. Here's the support article on how to set up benefits"

When I first set it up I was told there wasn't a way to calculate based on Gross but take the withholding after taxes. I setup a "Garnishments and Other Post-Tax Deductions" and just let it calculate off the Net.

Before the last pay cycle I switched to using the "Benefit" per the suggestion and it appears this is going to work. It seems to calculate based on the Gross but then deducts after taxes are calculated.

I still have to process the payment myself but this does at least get me compliant with Secure Choice.

View Best Answer >

bensmith4188 · ‎09-08-2023

Did this question get answered?

vhovar · ‎09-08-2023

@bensmith4188
Yes, I recently brought it up again and received the following:

"Use the Roth IRA benefit type to withhold contributions from employees. Here's the support article on how to set up benefits"

When I first set it up I was told there wasn't a way to calculate based on Gross but take the withholding after taxes. I setup a "Garnishments and Other Post-Tax Deductions" and just let it calculate off the Net.

Before the last pay cycle I switched to using the "Benefit" per the suggestion and it appears this is going to work. It seems to calculate based on the Gross but then deducts after taxes are calculated.

I still have to process the payment myself but this does at least get me compliant with Secure Choice.

Is anyone in Illinois using Square Payroll and filing their Illinois Secure Choice contributions?