Sage 100

v2.20 payroll.  One employee that had a few $.01 checks at the end of the year.  Manual taxes were entered per instructions from the CPA.  2019 has been closed but the W-2s and 941 have not been filed.  Upon reviewing the W-2s the CPA noticed the FICA and Medicare were incorrect because the social security and medicare wage limits were exceeded.   Box 4 is 8,993.80.  It should be 8,239.50. Box 6 is 3,320.18.  It should be 3919.35.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------

​Are you asking how to fix?  I had this happen too where during testing the employees were already over the limit and payroll was still withholding.  Since in test, I didn't pursue and hope that in 2020 it sees the limits - kicking that can down the road!.
To fix you could probably move the monies to FWH via the tax summary fix button and the 941 should reconcile itself for the employer overpayment.

------------------------------
Nancy Hanson
Blytheco LLC
Eagan MN
------------------------------

Thanks @Nancy Hanson​

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------

Original Message:
Sent: 01-15-2020 15:32
From: Nancy Hanson
Subject: FICA and Medicare adjustment

​Are you asking how to fix?  I had this happen too where during testing the employees were already over the limit and payroll was still withholding.  Since in test, I didn't pursue and hope that in 2020 it sees the limits - kicking that can down the road!.
To fix you could probably move the monies to FWH via the tax summary fix button and the 941 should reconcile itself for the employer overpayment.

------------------------------
Nancy Hanson
Blytheco LLC
Eagan MN
------------------------------

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------

Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------

He screwed up.  It's a long story and has to do with repayment of a loan.  I'll buy you a beer and give you the exciting CPA details at the end of February.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------

Original Message:
Sent: 01-15-2020 15:47
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------


Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland

@Jeff Schwenk  GL balance of employee A loan $100K.  Enter a payroll for employee A only, check the manual tax box.    ​Wages 25,000  FICA 1,550 Medicare 290  Deduction code is employee loan 23,159.99 = Net Check $.01.  No FWT or SWT.

A problem arises if one simply calculates the FICA as 6.2% and Medicare as 1.45% of wages if employee A has YTD wages greater than 132,900 (FICA limit).  In this case FICA was over withheld by $754.30.  Also, medicare goes from 1.45% to to 2.35% on wages over $200K.  In this case the .9% additional was not calculated.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------

Original Message:
Sent: 01-15-2020 15:47
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------


Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland

Teach your customers to call you before blindly following CPA instructions on recording anything in Sage 100. 

CPA: "Make this journal entry to write off bad debt". 

Customer: "Why does my AR Trial Balance report not agree to my GL for A/R?"

------------------------------
Eric Lunceford
First Mate Business Solutions
Oklahoma City, OK
877-880-8960
https://www.firstmatellc.com/
------------------------------

Original Message:
Sent: 01-15-2020 16:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

@Jeff Schwenk  GL balance of employee A loan $100K.  Enter a payroll for employee A only, check the manual tax box.    ​Wages 25,000  FICA 1,550 Medicare 290  Deduction code is employee loan 23,159.99 = Net Check $.01.  No FWT or SWT.

A problem arises if one simply calculates the FICA as 6.2% and Medicare as 1.45% of wages if employee A has YTD wages greater than 132,900 (FICA limit).  In this case FICA was over withheld by $754.30.  Also, medicare goes from 1.45% to to 2.35% on wages over $200K.  In this case the .9% additional was not calculated.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------


Original Message:
Sent: 01-15-2020 15:47
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland

Excellent point @Eric Lunceford​​ Was helping client last week reconcile her W-2's to the GL.  Her SIT account had a 3K balance in it.  Traced it to a JE given to her by the CPA, posted in September.  WTH........

@Doug Higgs - This is why I recommend that you let Sage the taxes the first time around.  Then go back and click on manual tax flag and then delete the computed taxes.  Eliminates the bad tax calculation by the CPA snafu...
​

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------

Original Message:
Sent: 01-15-2020 17:01
From: Eric Lunceford
Subject: FICA and Medicare adjustment

Teach your customers to call you before blindly following CPA instructions on recording anything in Sage 100.

CPA: "Make this journal entry to write off bad debt".

Customer: "Why does my AR Trial Balance report not agree to my GL for A/R?"

------------------------------
Eric Lunceford
First Mate Business Solutions
Oklahoma City, OK
877-880-8960
https://www.firstmatellc.com/
------------------------------


Original Message:
Sent: 01-15-2020 16:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

@Jeff Schwenk  GL balance of employee A loan $100K.  Enter a payroll for employee A only, check the manual tax box.    ​Wages 25,000  FICA 1,550 Medicare 290  Deduction code is employee loan 23,159.99 = Net Check $.01.  No FWT or SWT.

A problem arises if one simply calculates the FICA as 6.2% and Medicare as 1.45% of wages if employee A has YTD wages greater than 132,900 (FICA limit).  In this case FICA was over withheld by $754.30.  Also, medicare goes from 1.45% to to 2.35% on wages over $200K.  In this case the .9% additional was not calculated.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 15:47
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland

The customer always calls me to help enter special payroll checks like these.  I don;t calculate the taxes... not my job.   I have a 30+ year relationship with this CPA firm.  The partner sends me the numbers and I do it.  I don't know the motivations or the tax strategies, nor do I want to know what they are.  It's my job to execute what the customer and his CPA wants.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------

Original Message:
Sent: 01-15-2020 17:01
From: Eric Lunceford
Subject: FICA and Medicare adjustment

Teach your customers to call you before blindly following CPA instructions on recording anything in Sage 100.

CPA: "Make this journal entry to write off bad debt".

Customer: "Why does my AR Trial Balance report not agree to my GL for A/R?"

------------------------------
Eric Lunceford
First Mate Business Solutions
Oklahoma City, OK
877-880-8960
https://www.firstmatellc.com/
------------------------------


Original Message:
Sent: 01-15-2020 16:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

@Jeff Schwenk  GL balance of employee A loan $100K.  Enter a payroll for employee A only, check the manual tax box.    ​Wages 25,000  FICA 1,550 Medicare 290  Deduction code is employee loan 23,159.99 = Net Check $.01.  No FWT or SWT.

A problem arises if one simply calculates the FICA as 6.2% and Medicare as 1.45% of wages if employee A has YTD wages greater than 132,900 (FICA limit).  In this case FICA was over withheld by $754.30.  Also, medicare goes from 1.45% to to 2.35% on wages over $200K.  In this case the .9% additional was not calculated.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 15:47
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland

Don't disagree.  But if it and Sage doesn't match on FICA calcs, it is a good place to stop and run the flag up the pole for verification.  Apparently, you are the one who gets to fix it...

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------

Original Message:
Sent: 01-15-2020 17:47
From: Doug Higgs
Subject: FICA and Medicare adjustment

The customer always calls me to help enter special payroll checks like these.  I don;t calculate the taxes... not my job.   I have a 30+ year relationship with this CPA firm.  The partner sends me the numbers and I do it.  I don't know the motivations or the tax strategies, nor do I want to know what they are.  It's my job to execute what the customer and his CPA wants.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------


Original Message:
Sent: 01-15-2020 17:01
From: Eric Lunceford
Subject: FICA and Medicare adjustment

Teach your customers to call you before blindly following CPA instructions on recording anything in Sage 100.

CPA: "Make this journal entry to write off bad debt".

Customer: "Why does my AR Trial Balance report not agree to my GL for A/R?"

------------------------------
Eric Lunceford
First Mate Business Solutions
Oklahoma City, OK
877-880-8960
https://www.firstmatellc.com/


Original Message:
Sent: 01-15-2020 16:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

@Jeff Schwenk  GL balance of employee A loan $100K.  Enter a payroll for employee A only, check the manual tax box.    ​Wages 25,000  FICA 1,550 Medicare 290  Deduction code is employee loan 23,159.99 = Net Check $.01.  No FWT or SWT.

A problem arises if one simply calculates the FICA as 6.2% and Medicare as 1.45% of wages if employee A has YTD wages greater than 132,900 (FICA limit).  In this case FICA was over withheld by $754.30.  Also, medicare goes from 1.45% to to 2.35% on wages over $200K.  In this case the .9% additional was not calculated.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 15:47
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland

Not sure what you mean by "if Sage doesn't match on the FICA calcs".  The FICA was entered into Sage manually not calculated.  I'm not checking the FICA limits when the CPA gives me the exact PR taxes to withhold.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------

Original Message:
Sent: 01-15-2020 17:56
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

Don't disagree.  But if it and Sage doesn't match on FICA calcs, it is a good place to stop and run the flag up the pole for verification.  Apparently, you are the one who gets to fix it...

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------


Original Message:
Sent: 01-15-2020 17:47
From: Doug Higgs
Subject: FICA and Medicare adjustment

The customer always calls me to help enter special payroll checks like these.  I don;t calculate the taxes... not my job.   I have a 30+ year relationship with this CPA firm.  The partner sends me the numbers and I do it.  I don't know the motivations or the tax strategies, nor do I want to know what they are.  It's my job to execute what the customer and his CPA wants.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 17:01
From: Eric Lunceford
Subject: FICA and Medicare adjustment

Teach your customers to call you before blindly following CPA instructions on recording anything in Sage 100.

CPA: "Make this journal entry to write off bad debt".

Customer: "Why does my AR Trial Balance report not agree to my GL for A/R?"

------------------------------
Eric Lunceford
First Mate Business Solutions
Oklahoma City, OK
877-880-8960
https://www.firstmatellc.com/


Original Message:
Sent: 01-15-2020 16:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

@Jeff Schwenk  GL balance of employee A loan $100K.  Enter a payroll for employee A only, check the manual tax box.    ​Wages 25,000  FICA 1,550 Medicare 290  Deduction code is employee loan 23,159.99 = Net Check $.01.  No FWT or SWT.

A problem arises if one simply calculates the FICA as 6.2% and Medicare as 1.45% of wages if employee A has YTD wages greater than 132,900 (FICA limit).  In this case FICA was over withheld by $754.30.  Also, medicare goes from 1.45% to to 2.35% on wages over $200K.  In this case the .9% additional was not calculated.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 15:47
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland

I believe Jeff is talking about the employer amounts of FICA and Medicare on the Employers Expense Summary.  If the employer amounts don't match the employee amounts, it's an indication something is wrong and usually it's the employee amounts that have the problem.

------------------------------
Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)
Appleton WI
920-996-1176
------------------------------

Original Message:
Sent: 01-15-2020 19:01
From: Doug Higgs
Subject: FICA and Medicare adjustment

Not sure what you mean by "if Sage doesn't match on the FICA calcs".  The FICA was entered into Sage manually not calculated.  I'm not checking the FICA limits when the CPA gives me the exact PR taxes to withhold.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------


Original Message:
Sent: 01-15-2020 17:56
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

Don't disagree.  But if it and Sage doesn't match on FICA calcs, it is a good place to stop and run the flag up the pole for verification.  Apparently, you are the one who gets to fix it...

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 17:47
From: Doug Higgs
Subject: FICA and Medicare adjustment

The customer always calls me to help enter special payroll checks like these.  I don;t calculate the taxes... not my job.   I have a 30+ year relationship with this CPA firm.  The partner sends me the numbers and I do it.  I don't know the motivations or the tax strategies, nor do I want to know what they are.  It's my job to execute what the customer and his CPA wants.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 17:01
From: Eric Lunceford
Subject: FICA and Medicare adjustment

Teach your customers to call you before blindly following CPA instructions on recording anything in Sage 100.

CPA: "Make this journal entry to write off bad debt".

Customer: "Why does my AR Trial Balance report not agree to my GL for A/R?"

------------------------------
Eric Lunceford
First Mate Business Solutions
Oklahoma City, OK
877-880-8960
https://www.firstmatellc.com/


Original Message:
Sent: 01-15-2020 16:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

@Jeff Schwenk  GL balance of employee A loan $100K.  Enter a payroll for employee A only, check the manual tax box.    ​Wages 25,000  FICA 1,550 Medicare 290  Deduction code is employee loan 23,159.99 = Net Check $.01.  No FWT or SWT.

A problem arises if one simply calculates the FICA as 6.2% and Medicare as 1.45% of wages if employee A has YTD wages greater than 132,900 (FICA limit).  In this case FICA was over withheld by $754.30.  Also, medicare goes from 1.45% to to 2.35% on wages over $200K.  In this case the .9% additional was not calculated.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 15:47
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland

What I am saying is just enter the earnings amount and let Sage do the tax calc.  Then go back in, change to manual taxes to make your changes.  IF the SS calculated amount is significantly different, then you verify with the CPA what numbers to use.  Would save you from having to clean up after the parade elephants have passed through.  Apparently, the CPA didn't know the maximum had been reached.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------

Original Message:
Sent: 01-15-2020 19:09
From: Mary Jo Krueger
Subject: FICA and Medicare adjustment

I believe Jeff is talking about the employer amounts of FICA and Medicare on the Employers Expense Summary.  If the employer amounts don't match the employee amounts, it's an indication something is wrong and usually it's the employee amounts that have the problem.

------------------------------
Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)
Appleton WI
920-996-1176
------------------------------


Original Message:
Sent: 01-15-2020 19:01
From: Doug Higgs
Subject: FICA and Medicare adjustment

Not sure what you mean by "if Sage doesn't match on the FICA calcs".  The FICA was entered into Sage manually not calculated.  I'm not checking the FICA limits when the CPA gives me the exact PR taxes to withhold.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 17:56
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

Don't disagree.  But if it and Sage doesn't match on FICA calcs, it is a good place to stop and run the flag up the pole for verification.  Apparently, you are the one who gets to fix it...

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 17:47
From: Doug Higgs
Subject: FICA and Medicare adjustment

The customer always calls me to help enter special payroll checks like these.  I don;t calculate the taxes... not my job.   I have a 30+ year relationship with this CPA firm.  The partner sends me the numbers and I do it.  I don't know the motivations or the tax strategies, nor do I want to know what they are.  It's my job to execute what the customer and his CPA wants.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 17:01
From: Eric Lunceford
Subject: FICA and Medicare adjustment

Teach your customers to call you before blindly following CPA instructions on recording anything in Sage 100.

CPA: "Make this journal entry to write off bad debt".

Customer: "Why does my AR Trial Balance report not agree to my GL for A/R?"

------------------------------
Eric Lunceford
First Mate Business Solutions
Oklahoma City, OK
877-880-8960
https://www.firstmatellc.com/


Original Message:
Sent: 01-15-2020 16:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

@Jeff Schwenk  GL balance of employee A loan $100K.  Enter a payroll for employee A only, check the manual tax box.    ​Wages 25,000  FICA 1,550 Medicare 290  Deduction code is employee loan 23,159.99 = Net Check $.01.  No FWT or SWT.

A problem arises if one simply calculates the FICA as 6.2% and Medicare as 1.45% of wages if employee A has YTD wages greater than 132,900 (FICA limit).  In this case FICA was over withheld by $754.30.  Also, medicare goes from 1.45% to to 2.35% on wages over $200K.  In this case the .9% additional was not calculated.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 15:47
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland

Makes sense.  Thanks @Jeff Schwenk ​

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland
------------------------------

Original Message:
Sent: 01-15-2020 21:56
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

What I am saying is just enter the earnings amount and let Sage do the tax calc.  Then go back in, change to manual taxes to make your changes.  IF the SS calculated amount is significantly different, then you verify with the CPA what numbers to use.  Would save you from having to clean up after the parade elephants have passed through.  Apparently, the CPA didn't know the maximum had been reached.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------


Original Message:
Sent: 01-15-2020 19:09
From: Mary Jo Krueger
Subject: FICA and Medicare adjustment

I believe Jeff is talking about the employer amounts of FICA and Medicare on the Employers Expense Summary.  If the employer amounts don't match the employee amounts, it's an indication something is wrong and usually it's the employee amounts that have the problem.

------------------------------
Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)
Appleton WI
920-996-1176


Original Message:
Sent: 01-15-2020 19:01
From: Doug Higgs
Subject: FICA and Medicare adjustment

Not sure what you mean by "if Sage doesn't match on the FICA calcs".  The FICA was entered into Sage manually not calculated.  I'm not checking the FICA limits when the CPA gives me the exact PR taxes to withhold.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 17:56
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

Don't disagree.  But if it and Sage doesn't match on FICA calcs, it is a good place to stop and run the flag up the pole for verification.  Apparently, you are the one who gets to fix it...

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 17:47
From: Doug Higgs
Subject: FICA and Medicare adjustment

The customer always calls me to help enter special payroll checks like these.  I don;t calculate the taxes... not my job.   I have a 30+ year relationship with this CPA firm.  The partner sends me the numbers and I do it.  I don't know the motivations or the tax strategies, nor do I want to know what they are.  It's my job to execute what the customer and his CPA wants.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 17:01
From: Eric Lunceford
Subject: FICA and Medicare adjustment

Teach your customers to call you before blindly following CPA instructions on recording anything in Sage 100.

CPA: "Make this journal entry to write off bad debt".

Customer: "Why does my AR Trial Balance report not agree to my GL for A/R?"

------------------------------
Eric Lunceford
First Mate Business Solutions
Oklahoma City, OK
877-880-8960
https://www.firstmatellc.com/


Original Message:
Sent: 01-15-2020 16:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

@Jeff Schwenk  GL balance of employee A loan $100K.  Enter a payroll for employee A only, check the manual tax box.    ​Wages 25,000  FICA 1,550 Medicare 290  Deduction code is employee loan 23,159.99 = Net Check $.01.  No FWT or SWT.

A problem arises if one simply calculates the FICA as 6.2% and Medicare as 1.45% of wages if employee A has YTD wages greater than 132,900 (FICA limit).  In this case FICA was over withheld by $754.30.  Also, medicare goes from 1.45% to to 2.35% on wages over $200K.  In this case the .9% additional was not calculated.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland


Original Message:
Sent: 01-15-2020 15:47
From: Jeff Schwenk
Subject: FICA and Medicare adjustment

So the CPA tells client what to withhold in SS taxes?  Am puzzled how this happened.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 01-15-2020 15:32
From: Doug Higgs
Subject: FICA and Medicare adjustment

Is there any issue, re-opening 2019, voiding a check and the re-issuing the check?

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to."
Oscar Wilde - Alice in Wonderland