Medicare Tax not calculated for Bonus

[rfwoodvt]

Hey All,

Just entering my w2 info into the SSA website and I'm getting a message that says the medicare withholding is incorrect for the gross medicare wages I entered for one employee.

I've found the paycheck with the problem. I paid him $80 in the bonus field in addition to his regular hourly wages. The medicare tax withheld was based only on regular wages, not the total bonuse plus wages.

It doesn't look like FICA was withheld either.

What further complicates the issue is that when I printed W2's from pay window it appears the value for total federal, state, medicare and FICA wages include the bonus.

Help!

[Paul Mayer]

That is because you entered that "Bonus" but did not click the Pay button to recalculate the taxes.

Operator error, you need to be careful about making sure that when you enter "pay" no matter what type that you calculate the taxes. The only time you would not do that is in the case of after-the-fact payroll entry as in that case you dictate the numbers and not PayWindow.

[rfwoodvt]

OK, I understand that if I didn't hit "pay" then the calcs wouldn't have been done. But if I didn't hit the "Pay" button then please explain why the bonus was still paid.

It is a programming or logic error to allow the bonus to be paid without hitting the "pay" button, that is clearly NOT operator error.

Putting that all aside, how does one make the adjusting entries to correct the withholding amounts for w2 purposes?

[Paul Mayer]

OK, I understand that if I didn't hit "pay" then the calcs wouldn't have been done. But if I didn't hit the "Pay" button then please explain why the bonus was still paid.

It is a programming or logic error to allow the bonus to be paid without hitting the "pay" button, that is clearly NOT operator error.

Putting that all aside, how does one make the adjusting entries to correct the withholding amounts for w2 purposes?

No it's the proper logic as the softer allows what is called After-The-Fact payroll entry. Accountants get the numbers from their clients and manually enter the information by going into pay mode, enter the hours or salary for the period, click the Pay button and then edit the figures to match what they received from their clients who did the payroll by hand and save the record.

You did an "edit" and saved it when you entered that bonus amount just like an accountant would do in the above.

Our WageFiler program is a W2 Form editor for those that need to edit W2 Forms before printing. That will also allow you to submit them on-line through NELCO.