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Payroll taxes not deducted from employee
Posted: Fri Feb 28, 2025 2:47 pm
by fbclloyd
No payroll taxes were deducted from a new employee in December. This was discovered by Treasurer when doing the Quarterly Report. We owed the taxes, so we paid them. Now our payroll taxes show we overpaid. How do we correct this?
Re: Payroll taxes not deducted from employee
Posted: Mon Mar 03, 2025 4:30 am
by NeilZ
fbclloyd wrote: ↑Fri Feb 28, 2025 2:47 pm
No payroll taxes were deducted from a new employee in December. This was discovered by Treasurer when doing the Quarterly Report. We owed the taxes, so we paid them. Now our payroll taxes show we overpaid. How do we correct this?
You need to deduct the taxes from the employee's paycheck, not pay for them. They basically owe you for paying their income taxes, as well as Social Security and Medicare.
This will involve either a one-time manual adjustment to the employee taxes on the next check, or the employee writing a check to the church for reimbursement.