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Any thoughts on how to handle the suspension of FICA tax for those making less than $4,000 bi-weekly? Gotta love it when IRS tells you on Friday that you have to start something Monday. :(
The most unpleasant news is when you find out at the end of the month that you will be paid less than you were last month. I've lost count of how many different taxes we have to pay. Because of all these calculations and nuances, I don't envy the work of accountants. They are the real heroes. I think the best option at this point would be to use a third-party payroll service. I recently read the guides over at www.payrollindex.com/.../. I was surprised at how much this field has evolved. It would make life just so much easier for many employees and companies.
Are you suggesting an income code to Offset the Employee FICA deduction? Setting this Income to not calculate Employee or employer FICA on that income code? Would a negative deduction work. a Negative deduction to offset the Employee share of FICA. Thinking that this would increase the employee check without increasing taxable income. When it comes time to recover we would have a record of the amount of the negative deduction. We would take a positive deduction to recover. Who knows how this would flow to the W2.
Hi Steve, thanks for the question! I totally hear your frustration.
I doubt there will be an update at this time that we can do that will be able to accommodate this.
From what I hear, many customers are not doing it as it is not mandatory.
There are still a lot of unanswered questions and how to explain it to employees that they will get paid less in January (if they are still working for you) is difficult.
Today in GP, you can set up a new pay code so these wages are tracked and “unmark” the FICA box
Now this would be for employee and employer
You would also need to remember that TSA deductions would be impacted as you cannot shelter a TSA from SS that was never taxes in the first place
Thanks
Terry
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