Rounding of Medicare Taxes (GP2010 and GP2013)

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Posted on by Douglas Karel

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I have never noticed this before, and I know annualization comes into play on payroll tax calculation, but I have had a couple of individuals ask about the calculation of taxes and rounding. Using Fabrikam as an example:

Pilar Ackerman Salary - Pretax deductions = Medicare taxable wage * 1.45%

$937.50-72.95-20.00=844.55*1.45%=12.245975 shown as 12.24 on the calculate payroll report - I would assume that it should be 12.25

Louis Banafaz

$1,312.50-5.00=1,307.50 * 1.45% = 18.95875 shown as 18.96 on the calculate payroll report which I would assume to be rounded properly.

Was wondering if anyone else has looked at this, this closely, and what would be a good response to tell the customers. We know that for the year, total wise it will be a few dollars, but they are thinking it should be more precise.

Thank you.

Doug.

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Community Member Microsoft Employee on at

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Re: Rounding of Medicare Taxes (GP2010 and GP2013)

I have seen this at 3 of our customers since the November tax tables were installed and it has continued with the 2013 tax tables. It looks like a bug somewhere in the calculations to me. I am going to log an issue with Microsoft.