Payroll deductions

[Ada676]

I have an employee who makes about $2205.00 a year and gets paid twice a month, which ends up being $91.88 for each paycheck. I realize she makes so little that Federal & State taxes may not be deducted b/c how she files, but I don't understand why SS & Med aren't being deducted. Any suggestions? Do I need to manually enter the SS & Med. amounts in?

Thanks!

[NeilZ]

I have an employee who makes about $2205.00 a year and gets paid twice a month, which ends up being $91.88 for each paycheck. I realize she makes so little that Federal & State taxes may not be deducted b/c how she files, but I don't understand why SS & Med aren't being deducted. Any suggestions? Do I need to manually enter the SS & Med. amounts in?

Thanks!

The first thing I'm going to ask is do you have SS & Medicare pay items attached to her employee record ??

[Ada676]

If you are referring to under the Pay items when I'm in Maintain List of Employees, then yes I do. I'm new to this software and just can't figure this 1 employee out. There are never any taxes taken out of her check.

[NeilZ]

If you are referring to under the Pay items when I'm in Maintain List of Employees, then yes I do. I'm new to this software and just can't figure this 1 employee out. There are never any taxes taken out of her check.

FWIW ... Powerchurch uses the Annual Income Tax table to create the deductions for Income tax. Based on those tables, I'm surprised that this employee pays more than 50 cents in taxes on a yearly income of $2205. I'm not getting the 91.88 figure you're seeing, I'm seeing (based on 26 payroll periods) 84.81 ..

As far as SS & Medicare: She still should have 6.2% taken out for SS, which is roughly $5.26 per payroll period of (assuming) $84.81 per payroll period. Medicare should also be 1.45% which would be $1.23 or so.

There are no exemptions for SS & Medicare and NO caps, so if she has been assigned the same SS & Medicare pay items as everyone else (and she should be) there should be some money taken out each paycheck.

I would make sure that the Pay Items are setup correctly under the Maintain Item Descriptions. Located under the Payroll -> Setup menu items. I'd also check to make sure that the Social Security & Medicate tax tables are assigned and setup correctly.

[Zorak]

Also, on the Pay Items tab, make sure there is a check mark showing next to those deduction items. They will be unchecked if the items are not set to process on the check.

[tborgal]

Neil,

The original post says the employee is paid twice a month not bi-weekly so there would only be 24 checks not 26. So the $91.88 is correct.

[NeilZ]

Neil,

The original post says the employee is paid twice a month not bi-weekly so there would only be 24 checks not 26. So the $91.88 is correct.

Ack .. missed that ...

[Ada676]

Thank You! Thank You! Thank You! For whatever reason Non-Tax Income was checked for her. Ugh!