Deductions for a SIMPLE IRA plan

[sierrasoftwareinc]

I've viewed the tutorial on deductions and how to apply it to the "pay employee" process many times. I don't understand how to tailor this for each employee. Employees younger than 50 can only contribute 11500.00 to a SIMPLE IRA, so that is their cut off amount. Employees over 50 can contribute a maximum of 14000.00, which is a different cut off amount. Other employees want to limit their contributions to less than the maximum for their age category. It seems the only way to set this up is at the company level, and everyone has to have the same cut off amount, so it cannot accommodate even the two categories of below 50 and over 50 for the contribution limits. This problem would also exist for a 401K plan, since there are catch up contributions for people over age 50 with than plan too. There must be some way to do this. What am I missing?

[Paul Mayer]

The deductions are controlled by the company settings, the only settings at the employee level are the deduction amount or percentage. With the number of variables that you have, PayWindow would not suit your needs.

[sierrasoftwareinc]

Your answer is clear, and we can work around this by manually checking eveyone's total contributions as time goes by and changing their % to zero when they reach their limit, but it seems that if you are going to allow your program to handle 401K deductions (no different than our SIMPLE IRA except for the amounts), then why wouldn't you implement it so that it at least handles the different IRS maximum contribution limits for people under 50 and over 50. I assume there are other people using this program. Is everyone simply handling this manually? Isn't this something that you could implement fairly easily. When we bought the program we checked to see if it could handle 401K deductions which we were considering at the time, and it looked like it could. It's not so easy now to just drop it and switch to something else in the middle of the year. Why can't you implement a solution which allows the user to set the limit for each person?

[Paul Mayer]

PayWindow is a basic low cost payroll system designed for simple basic company needs. You seem to have the needs for the high end payroll packages that start at $200 to over $2,000 a year. That's why we sell through Shareware where you see what you get before you pay for it in the 30 day trial period and only then pay for it. With our $45 a year price, we keep the costs down as much as possible to give small companies an affordable tool not like the high end packages or payroll services.

So we keep it as basic and simple as possible.

When you get into the realm of offering many plans for your employees that we cannot support, you really need to look at the high end packages to cover those needs.