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GP Not Calculating FICA Social Security Wages Correctly?

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Posted on by PattiK323

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We are using GP 2018.

As we are nearing the end of the year and encountering employees meeting their FICA wage limit, I'm having issues reconciling their FICA Social Security Wages to the PAYROLL SUMMARY. GP does not appear to consistently apply the tax-exempt deductions for FICA Social Security Wages when an employee meets their max in a given pay period.

If an employee has FICA Social Security Wages in a pay period, shouldn't all tax-exempt deductions to those wages apply in full, if they are less than the wage amount (as they are in all of my examples)? This doesn't seem to be the case. In my examples, the tax-exempt deductions in question are health insurance premiums (INS125) and short-term disability premiums paid by the employee (STD).

In October, GP correctly applied the FICA Social Security wage exemption for the health insurance premium for an employee who met their max in a pay period (but, still had FICA Social Security Wages). But, it didn't include the tax-exempt deduction for that same employee's STD premium for that pay period.

In November, I had 2 more employees meet their FICA Social Security max. They both had FICA Social Security wages for the first pay period of the month. But, GP is not applying the insurance premium exemption OR the short-term disability exemption to their FICA Social Security Wages.

Please help me understand this!

I have attached the reconciliation file with notes. These numbers are used for our 941 reporting (941 line numbers are referenced in the file), so it's important that they're correct!

OCT22_5F00_NOV22-940_5F00_941-Wage-Reconciliation.xlsx

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Microsoft Dynamics GP

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Community Member on at

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RE: GP Not Calculating FICA Social Security Wages Correctly?

Yeah, GP not working for me.

From last update
Terry R Heley Microsoft Employee on at

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RE: GP Not Calculating FICA Social Security Wages Correctly?

Yes I did have a TSA deduction involved with this test.

Here is a link to create a case

https://support.serviceshub.microsoft.com/supportforbusiness

Thanks

Terry Heley

Microsoft
PattiK323 279 on at

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RE: GP Not Calculating FICA Social Security Wages Correctly?

In your test, did you have tax-exempt deductions, such as health insurance and employee-paid short-term disability? Was the max met in one payroll and there was a subsequent payroll in the month with no FICA wages?

How do I go about opening a case?

Thank you.
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Terry R Heley Microsoft Employee on at

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RE: GP Not Calculating FICA Social Security Wages Correctly?

Hi Patti,

I did a quick test where I met the SS limit in January all my reports and information tie as I expect see below.

I then ran a payroll for the same year in September and it all ties.

We may need you to create a case so we can look into these records further with you, as we typically do not see issues with maximums and deductions.

Thanks

Terry Heley

Microsoft
PattiK323 279 on at

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RE: GP Not Calculating FICA Social Security Wages Correctly?

The tax is calculating correctly. It's the FICA Social Security Wages (the tax base) that I believe are not. Exemptions are not being properly or consistently applied in the pay period that the FICA wage max is met.
DAnny3211 9,278 Moderator on at

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RE: GP Not Calculating FICA Social Security Wages Correctly?

hi

look this

community.dynamics.com/.../fica-social-security-tax-table

DAniele