FICA and MediCare withholdings on Retirement Contributions

Let me help you fix your tax issue, Alexuus.

Your taxes will not be calculated when the employee’s profile is set not to deduct Social Security and Medicare. Let’s open the employee's profile and make sure o uncheck the Social Security and Medicare exemption status. To do so, follow the steps provided below:

1. Go to the Payroll menu on the left panel.
2. Select the Employees tab.
3. Open the employee profile.
4. Click Edit on the Tax withholding section.
5. Expand the Tax exemptions section.
6. Remove the checkmark for the Social Security and Medicare box.
7. Click Save.

After updating the exemption status, this will now withhold those taxes when running payroll. 

In case you want to manage your employees or review the taxes and their limits, consider checking out these articles for more details: 

• Add your new employee to QuickBooks Payroll
• Understand payroll tax wage bases and limits

Furthermore, to ensure you are getting the right data, QuickBooks provides several reports that you can use and what your company needs. go through this article for reference: Run payroll reports in QuickBooks Online Payroll. 

Reach out to me if you have any other concerns or questions about withholding taxes. I’ll pop right back in to answer them for you. Have a good one.

QuickBooks is doing the calculations incorrectly!

I received an email wanting me to "accept solution"... but it is NOT solved.

QuickBooks Online Payroll is WRONG!

It HAS to withhold Social Security and MediCare from Retirement Contributions!

It is NOT!