Social Security Employee Tax

[Hunger Mountain]

Hi,

I am on PC +, Ver. 11.5. On Friday, 1/4/2013 I updated my Social Security Employee Tax Table to 6.2% (along with the Federal and Vermont State Tax tables). We have two employees. Myself (office administrator) and a youth pastor. My salary for the pay period (12/31/12 - 1/6/2013) was $360. PC + (correctly) allocated 6.2% to my SS deduction. The youth pastor get's paid $100. per week. Not sure why, but PC+ allocated 4.2% ($4.20) to his SS deduction. Could this be because he makes under a certain amount? Any other thoughts on why PC + correctly allocated my SS deduction and not his?

One other quick question. For the Medicare (Employer and Employee) and Social Security (Employer and Employee) is it recommended to the check the box which indicates, "Round Tax to Nearest Whole Dollar"

Thanks for your help. (This is my first experience doing payroll) lol

Sincerely,

John B.

[NeilZ]

Hi,

I am on PC +, Ver. 11.5. On Friday, 1/4/2013 I updated my Social Security Employee Tax Table to 6.2% (along with the Federal and Vermont State Tax tables). We have two employees. Myself (office administrator) and a youth pastor. My salary for the pay period (12/31/12 - 1/6/2013) was $360. PC + (correctly) allocated 6.2% to my SS deduction. The youth pastor get's paid $100. per week. Not sure why, but PC+ allocated 4.2% ($4.20) to his SS deduction. Could this be because he makes under a certain amount? Any other thoughts on why PC + correctly allocated my SS deduction and not his?

One other quick question. For the Medicare (Employer and Employee) and Social Security (Employer and Employee) is it recommended to the check the box which indicates, "Round Tax to Nearest Whole Dollar"

Thanks for your help. (This is my first experience doing payroll) lol

Sincerely,

John B.

Did you create a NEW Employee SS Tax Item ?? All you should have done was update the existing table from 4.2 to 6.2%. If the payroll was run on the 6th, you both should have been charged 6.2%.

Rounding up is optional, however, if you do so, you need to do the same when you file your quarterly returns.

[Hunger Mountain]

Hi,

I found the answer to part one of my inquiry. In the Payroll --> Maintain List of Employees Table, someone (before me) had set the Youth Pastor's Employee SS deduction to a "manual amount" of $4.20. I set his SSI deduction to Social Security - Employee Tax Table and "voila" problem solved.

I could still use a pointer on whether I should check the box in the SS & Medicare Tax Tables to "Round Tax to the nearest whole dollar".

Thanks again for any assistance / suggestions.

Sincerely,

John

[tborgal]

My personal position is not to. Simply because when you do the calculation done when filing your 941 it will be different than what you have withheld and your W2's will not match what the SSA wants to see. But this is just my opinion. Others may think differently about it however.

[Leighanne Temple]

Not sure if I'm posting under the right heading. I have a question concerning SSI/Medicare. We received a Christmas bonus in December but we failed to deduct SSI/Medicare deduction. However since I also keep a manual record I did pay both the employer and employee share on the 941. Would it be okay to take the SSI/Medicare out of their check in January 2013? Would this throw off our W2's for 2013? Do you know another way to fix this?

Thanks so much!

[JohnDMeyers]

If you correct it in 2013, it will mess you up.

Unless you are talking hundreds-of-dollars, I would count it as a "church" mistake, which means the employees keep the extra amount and the church pays with an expense check (not in payroll) in 2013.

[Leighanne Temple]

Thank You!