The new medicare tax rates require medicare deductions for the individual to increase from 1.45% to 2.35%, an additional .9%, on income over $200,000 annual wages. The employer is limited to paying the matching medicare up to the first $200,000.
If you identify the individual medicare deduction as a medicare tax table, you do not get the opportunity to set the additional charge to the individual.
If you use the "generic percentage table" tax type to get the annual rate table so you can set the stepped collections, you get the "deduction and exemption" tab where you must put in at least $.01 for a withholding allowance. Otherwise you cannot save the table.
I actually have 2 questions.
1. Will Power Church be making an update that will correct this so the tax collected is identified as a medicare tax?
2. If there is not a correction, how can the tax be collected and identified as the medicare collection for the individual?
Thanks
Medicare tax tables in payroll module
Moderators: Moderators, Tech Support
Re: Medicare tax tables in payroll module
If I remember right, they did say that they are looking at having this fixed within the next few months. Well before anyone would hit the $200K limit. You should use the standard Medicare table setup for now.CMUMC001 wrote:The new medicare tax rates require medicare deductions for the individual to increase from 1.45% to 2.35%, an additional .9%, on income over $200,000 annual wages. The employer is limited to paying the matching medicare up to the first $200,000.
If you identify the individual medicare deduction as a medicare tax table, you do not get the opportunity to set the additional charge to the individual.
If you use the "generic percentage table" tax type to get the annual rate table so you can set the stepped collections, you get the "deduction and exemption" tab where you must put in at least $.01 for a withholding allowance. Otherwise you cannot save the table.
I actually have 2 questions.
1. Will Power Church be making an update that will correct this so the tax collected is identified as a medicare tax?
2. If there is not a correction, how can the tax be collected and identified as the medicare collection for the individual?
Thanks
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: Medicare tax tables in payroll module
Thanks for the reply. That is probably the safer route to make sure the payroll module captures the withholding as Medicare tax.