sierrasoftwareinc
11-05-2013, 12:46 AM
You calculate additional Medicare tax properly when processing an employee's pay check, but if you then go to transactions and edit the check, the recalculation of the net pay doesn’t deduct the additional Medicare withholding tax.
A second question. When you produce a 941 form, how do you calculate the amount in the additional Medicare wages box? I would have summed all of the amounts over $200,000.00 (year to date) that have been earned by all employees during the quarter. You don’t do this.
On the 941, because of roundoff, either your field "taxable wages & tips subject to additional Medicare Tax withholding"
or your field with the calculated tax (x .009) will be incorrect by a few pennies. Which way is more consistent with your other processing?
Your calculation method causes a small error in the 941 additional medicare wages. For example I had an employee who went over $200,000.00 by $10614.98. On his pay stub the additional Medicare tax is $95.53 ($95.53482 rounded correctly). But on the 941 you show the additional medicare wages as $10614.44 (the pennies are incorrect). This small error is caused because you took the tax ($95.53) and divided by .009. In your calculation you lose the amount of the tax that was rounded off.
Thanks,
A second question. When you produce a 941 form, how do you calculate the amount in the additional Medicare wages box? I would have summed all of the amounts over $200,000.00 (year to date) that have been earned by all employees during the quarter. You don’t do this.
On the 941, because of roundoff, either your field "taxable wages & tips subject to additional Medicare Tax withholding"
or your field with the calculated tax (x .009) will be incorrect by a few pennies. Which way is more consistent with your other processing?
Your calculation method causes a small error in the 941 additional medicare wages. For example I had an employee who went over $200,000.00 by $10614.98. On his pay stub the additional Medicare tax is $95.53 ($95.53482 rounded correctly). But on the 941 you show the additional medicare wages as $10614.44 (the pennies are incorrect). This small error is caused because you took the tax ($95.53) and divided by .009. In your calculation you lose the amount of the tax that was rounded off.
Thanks,