W-2

[trekbear]

I had an issue with the W-2 Medicare and FICA taxes. After much research I found that on January 20th, the sick hours that were paid were taxed twice. Only one of of the 10 employees working for this company had this happen. Has anyone else come across this? I now have to revise the employees W-2. Do you support the W-2C at all? This is hourly pay with sick and vacation hours at the same rate, plus bonuses. No other things are involved. I never change the FICA or medicare fields if the employee does not reach the wage limits. I do have one client that when she goes over the social security limit I always have to adjust her 941 as it is not correct for that quarter. I always verify it the month the limit is reached as well. any help would be appreciated

[Paul Mayer]

Yes, every Quarter when you print your 941 Form if line 7 is more than a few cents you have a problem. Our 941 math audits the saved transactions for problems.

This FAQ has a list of all the mistakes that users have done in the past to cause the problems:

http://zpay.com/vbulletin/showthread.php?3274-941-Form-Numbers-Do-Not-Match-Employer-Totals-Report

If he numbers are off, you don't adjust, you look in that list and find you problem.

[trekbear]

I can tell you what happened. ON January 20th payroll I paid an employee 26 hours of regular time and 8 hours of sick. The FICA and Medicare that was due on the sick was doubled. I have the check stub that shows the amounts and that the taxes were calculated wrong. The FICA and Medicare are off around $16.00 over paid. The exact amount that the sick pay should have been taxed on. The 941 was right on so I never knew there was a problem. Now when you look at the transaction the taxes are correct. It was labor intensive to have to go through an entire year to find the issue.
As far as the wage limit for social security I am usually off by more than a few cents. That one I am aware of and have learned to watch for it. Usually third quarter in August or September, I also just manually change the 941 form as it is off as well. It shows owing more than I should.

[Paul Mayer]

It appears that you do a lot of editing on the fly, this is where problems happen. After making changes, always be sure to click to recalculate the taxes before saving. It is impossible for the FICA and Medicare to be off if you remember to do that. Watch this video to see what problems can be made:

http://zpay.com/PayWindowTutorials/BreakingPayWindow/index.html