Payroll Users -->""Employer"" FICA taxes are not calculated if the employee has reached limit and then the limit has been changed in Tax Table Maintenance.
In ABC,
1. Verify Employer & Employee FICA LIMITS are $113,700 in Tax Table Maintenance.
2. Create New Employee #11-0000001
3. In Payroll Data Entry, Weekly payroll, Pay Ending date 05/31/10
4. Select EE # 11-0000001
- 01 earnings = $115,000.00, Click No to auto deductions
- Note: Employers Expense summary shows correct Employee & Employer FICA Tax $7,049.40
7. Print & update checks
8. In Tax Table Maintenance, change FICA rates to $115,000.00
9. Process payroll data entry, for Employee #11-0000001
- 01 Earnings = $1,000.00, Click No to Auto Deductions
10. Run Payroll Tax Calculation.
11. Preview the Employers Expense Summary.
- Note: Employers Expense summary shows the correct EMPLOYEE Social Security tax of $80.60 but the Employer Social Security tax did not calculate, which causes the Employer Tax Liability Deposit to be understated (last page of Employers Expense Summary)
- Which will also causes the Quarterly 941-Schedule B form and 941-Schedule B form in eFiling and Reporting to be wrong after payroll is updated.
Note: The Employer FICA wages in Tax Summary and in PR_40 are correct