total check to IRA distribution

Question

I have an employee wanting to put his entire paycheck for this week into his IRA. Today's PR transaction also includes our year bonus. I have updated his employee DEDUCT to what his gross pay and bonus is. How will that work as far as taxes, etc.?

ArtMinds · Answer

Another option, if you want to accommodate the employee's request to contribute the full amount of his NET check, would be to generate the check as usual, and before printing or generating direct deposit, use "Enter Checks" to call up the check, and then try entering different amounts into the IRA deduction field, and re-process, until you achieve a very low dollar amount for the NET check amount. This is an iterative process, because increasing the IRA deduction, will reduce certain taxes, but not all taxes, and you will have to try to come as close as possible to a zero net check amount, but because you can't generate a zero amount check, you would need to leave a small amount to be paid on the check for it to process normally.

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