We have a worker who was exempt from FICA and Medicare taxes through the first half of 2019 and was receiving pay checks throughout this time period. Now this worker is no longer exempt and must pay these taxes starting in July 2019.
In the worker's first check in July - the software is attempting to "catch up" on all of the FICA and Medicare taxes and is causing the worker to have a 0.00 pay statement due to the large tax amounts for FICA and MEDI that are in the pay statement.
The FICA and Medicare tax codes on the worker record had their original "version" expired AND a new version was entered to start on the July pay period. However, this does not seem to have affected the tax "buckets" for this worker within the tax engine.
The only way that I know of to get around this would be to create a brand new worker record which would then reset the tax bucket dates to July. If possible, I would like to avoid creating a brand new worker record but, in my mind, this looks like a bug BUT has anyone experienced this issue and got around it?
*This post is locked for comments