FICA AND MEDICARE DESCREPANCIES

[eastport]

We have 3 employees.

2 of them FICA and Medicare Withholding amounts are correct.

One is withholding too much.

Why is this – the tax tables are the same for all of them?

[Zorak]

Take a look at the pay frequency of all three employees. My guess would be one of them is set to semimonthly instead of biweekly, or something similar.

Go to Accounting > Payroll > Maintain List of Employees.

The pay frequency controls the number of checks per year that the employee receives. We use this calculation to then compare their income amounts to the annual tax table.

An incorrect number of checks per year will yield an incorrect calculation off the tax table.

[eastport]

We have 2 biweekly employees and 2 monthly employees. One of the monthly employees is mis-calculated.

[Zorak]

You didn't say whether you checked the pay frequency or not.

The only other thing that I can think of that would cause a difference in calculation is if there is an exempt/year setting on the deduction item in Maintain Employee Pay Items.

You may need to give us a call in Technical Support to have someone walk you through the employee setup to take a look at everything.

(800) 486-1800

[beas]

Zorak,

That's interesting information. I didn't think that FICA and MC calculations were calculated the same way as FWT since they are a straight percentage payroll deduction. (e.g. $100 paid in a pay period has an FICA withholding of $6.20 and a MC withholding of $1.45 no matter how many exemptions or what their yearly salary is.)

I know FWT (and SWT if you're lucky, but we in Oregon aren't since they calculate state withholding strangely) is calculated using the annual salary and annual payroll withholding calculation.

I'm not trying to be wise guy, but I am confused here. I tried changing an employee's annual salary and pay frequency, etc., but it didn't have any effect on the FICA and MC deductions. I've been using PC+ for 15+ years and always thought this was just a straight calculation except for a cap on FICA.

[Zorak]

I didn't think that FICA and MC calculations were calculated the same way as FWT since they are a straight percentage payroll deduction. (e.g. $100 paid in a pay period has an FICA withholding of $6.20 and a MC withholding of $1.45 no matter how many exemptions or what their yearly salary is.)

This is how a flat percentage table works if everything is set up properly. I was offering possibilities of things you might not have set up properly, since you said it isn't working properly.