doowle
03-27-2012, 05:22 AM
I have a client who paid 'cash' (for months, to multiple employees) in 2011 and now wants to go back and file properly for the amounts paid, paying the tax deductions that should have come out (which then gets reported as additional pay) for the employees. But doing that means that those amounts have to be reported as additional pay on their w2.
ie, if paid $30 and should have had $5 in fica, medicare, & sdi deductions, then need to enter $35 as wages so net check comes out to actual net check, and tax amounts paid are included as additional wages.
I tried entering the employee as exempt from taxes to get the net check amounts in, then making them non-exempt, but it doesn't go back and calculate taxes due on the wages 'paid' while the employee was 'exempt', so that is not an option.
I tried entering the hours, totalling up the deductions, adding that to the wages, but then it of course changes the deduction amounts - so it takes fiddling around 5 or 6 times with a single transaction to both get the net check amount correct, and report the taxes the employer is paying for the employee as additional wages. There must be a better way to do this.
1- How can I enter the net check amount, and have it calculate the gross wages for that net check amount? It could take me days to enter the whole payroll the way I am doing it now. Or is there a way to enter all the checks as paid with no deductions calculating, but still have it calculate the proper tax due on those wages in the quarterly reports? I could then just add a single transaction with the quarterly totals on each employee.
2-Also, I am hoping the program knows to use previous tax tables for previous pay dates (both current & prior year) when I change pay date-doesn't it? If not, how do I deal with this issue?
Thank you!
ie, if paid $30 and should have had $5 in fica, medicare, & sdi deductions, then need to enter $35 as wages so net check comes out to actual net check, and tax amounts paid are included as additional wages.
I tried entering the employee as exempt from taxes to get the net check amounts in, then making them non-exempt, but it doesn't go back and calculate taxes due on the wages 'paid' while the employee was 'exempt', so that is not an option.
I tried entering the hours, totalling up the deductions, adding that to the wages, but then it of course changes the deduction amounts - so it takes fiddling around 5 or 6 times with a single transaction to both get the net check amount correct, and report the taxes the employer is paying for the employee as additional wages. There must be a better way to do this.
1- How can I enter the net check amount, and have it calculate the gross wages for that net check amount? It could take me days to enter the whole payroll the way I am doing it now. Or is there a way to enter all the checks as paid with no deductions calculating, but still have it calculate the proper tax due on those wages in the quarterly reports? I could then just add a single transaction with the quarterly totals on each employee.
2-Also, I am hoping the program knows to use previous tax tables for previous pay dates (both current & prior year) when I change pay date-doesn't it? If not, how do I deal with this issue?
Thank you!