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Setting up Simple IRA benefits in Console

Setting up Simple IRA benefits in Console

Set up Simple IRA benefits in Check's Console with step-by-step instructions and compliance details.

This article explains what a Simple IRA plan is and how to set it up in Check's Console. It includes key compliance details, reporting requirements, and step-by-step instructions for implementation at both the company and employee levels.

Note: Partners offer different product capabilities. While you can create and manage benefits directly in Console, your company’s payroll product may also include this functionality. Consult your team for best practices.

What is a Simple IRA plan?

A Simple IRA is a retirement savings plan designed for companies with 100 or fewer employees. It allows both companies and employees to contribute toward retirement with lower administrative complexity and cost than traditional 401(k) plans.

Taxation and reporting

Use the table below to understand how Simple IRA contributions are treated:

Tax
Taxable
Exempt
Federal Income Tax
✓
Social Security (FICA)
✓
Medicare
✓
Federal Unemployment (FUTA)
✓
State Withholding
Varies by state
Varies by state
State Unemployment
Varies by state
Varies by state
For W-2s, Simple IRA contributions are reported in Box 12 using Code S.

Some states do not reduce taxable wages for Simple IRA contributions when calculating state income tax or unemployment tax.

2025 contribution limits

Annual Limit
Catch-up (age 50–59, 64+)
Catch-up (age 60–63)
Compensation Limit
$16,500
$3,500
$5,250
$345,000
  • Check will automatically apply catch-up contributions for employees aged 50+
  • Ensure employee birth dates are accurate in Console
  • The compensation limit affects employer matches—employees earning more than this amount are not eligible for additional match contributions

Retirement matches

Companies typically match employee contributions dollar-for-dollar up to 3% of compensation. You may match as little as 1% in up to 2 out of 5 years if employees are notified in advance.

Non-elective contributions

Instead of matching contributions, companies can choose to contribute 2% of compensation for all eligible employees—regardless of employee participation.

Check does not support non-elective contributions for Simple IRA plans.

Setting up Simple IRA benefits in Console

Step 1: Add the benefit at the company level

  1. Go to the Company profile and click on Benefits
  1. Click Add Benefit
  1. Complete the following fields:
      • Type: Select Simple IRA
      • Description: Appears on reporting and pay stubs
      • Period: Leave as none for per-payroll; set to monthly if desired
      • Company Period Amount: Leave blank (typically set per employee)
      • Employee Period Amount: Leave blank (typically set per employee)
      • Start Date: Enter when the benefit should become available
  1. Click Save

Step 2: Assign the benefit to an employee

  1. Go to the Employee profile and click on Benefits
  1. Click Add Benefit
  1. Select Assign existing company benefit
  1. Complete the following fields:
      • Type: Select Simple IRA
      • Description and Period will auto-fill
      • Company Contribution Amount (if fixed dollar amount)
      • Employee Contribution Amount (if fixed dollar amount)
      • Company Contribution Percentage
      • Employee Contribution Percentage
      • Effective Start: Date contribution should begin
      • Effective End: Leave blank unless there’s a scheduled stop date
  1. Click Save

Recording

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Last updated on January 31, 2025

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