Negative or Incorrect Amounts are Calculated for FICA and/or Medicare Taxes in Sage 100 Payroll

Description

Negative or Incorrect Amounts are Calculated for FICA and/or Medicare Taxes

Resolution

• Negative tax amounts occur when an employee exceeds FICA (Social Security) or Medicare tax limits. This is usually the result of incorrect amounts entered on a manual check. Payroll self adjusts the tax by refunding the overpaid tax amount to the employee. The refund amount is the difference between the limit and the overpayment. The refund amount appears as a negative amount on payroll check stubs.
• Additional tax amounts occur when an employee has exceeded the FICA or Medicare wage limit but the FICA and/or Medicare TAX amounts have been under-withheld. Payroll self adjusts the tax by withholding additional tax amount from the employee’s paycheck. The additional tax amount is the difference between what should of been withheld (Tax Limit x Tax Rate) and the actual amount of tax withheld from the employee.

Review the Quarterly Tax Report:

1. Open Payroll, Reports, Quarterly Tax Report.
2. Run for all employees
3. Review any employee(s) that have an asterisk showing in Variance column.