Hi There,
Can you tell me when the additional FICA portion can be more automated? Currently if we set it to FICA the taxable wages are wrong, but if we set it to 'All Other' it does not get added to the FICA tax on the W2. Either way there is a manual step. Thank you!
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Cheryl,
While that information is correct as far as setting up the information on the Deduction tab, it is also incomplete. You also need to set up the correct information on the Exemptions tab. Certain medical/health deductions are not included in wages for Medicare, and you also need to exclude the FED6 wages from the calculation.
Could be that the Tax Table update information is only making sure to verify that the Update tables did not make changes to the overall Deduction setup.
The link I sent you provides the information related to how to configure the Exemption Information. I have been going back and forth with MS (specifically Elaine) on this topic; if she is seeing this post, maybe she can comment on the documentation issue.
Thanks for this answer. I am confused as the difference between the information and tax update file that was released on 2/2. Which is correct?
To correct the setup of the Additional Medicare Tax deduction (FED9), follow these steps:
1. Open Deduction Maintenance (02.290.00).
2. In Deduction ID, type FED9.
3. Click the Deduction tab.
4. In Base Type, select Gross Earnings.
5. In Calculation Method, select Fixed Percentage.
6. In Fixed Pct/Rate, enter 0.90.
7. In Min YTD Subject Base, enter 200000.00.
8. In Max YTD Subject Base, enter 999999999.99.
9. Click to select the Employee Deduction check box.
10. Click the W-2 Control tab.
11. Verify in Box Number that Box 06 Additional Medicare tax is selected.
12. Click Save, and then close the screen.
Thank you!
Cheryl
Cheryl,
I assume you are really referring to the Additional Medicare Tax, and not FICA...
See the article in the attached link. Only exception to this recommended setup is in Step 3; recently corrected recommendation is:
3 . Change the Min Ytd subject base to 200,000.00 and Max Ytd subject base to 99999999.99
Modifying step 3 should eliminate any potential small rounding issues for EE's not exceeding the $200K wage limit.
Following this setup will automate the FED9 calculation for you.
https://mbs.microsoft.com/customersource/Global/SL/support/hot-topics/Msdslfed9ht
Let me know if you need any other help.
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