Medicare company contributions problem

Thanks for reaching out to us, SJH22.

It is unusual that two of your employees' Medicare company contributions have increased. I know a way to find out what's causing this.

QuickBooks has an automatic calculation feature that corrects or adjusts the amount. There may be payroll that doesn't have a Medicare company contribution, which is causing it to increase. Let's run the Payroll Detail Review report and check the calculation by multiplying the amount base on the corresponding company contribution rate.

Here's how:

1. Go to the Reports menu.
2. Hover your mouse to the Employees & Payroll, then select Payroll Detail Review.
3. Click Customize Report, then go to the Filter tab.
4. In the Search Filter field, enter and select the Payroll item.
5. Under Payroll Item, select Multiple payroll items.
6. Choose Medicare Company.
7. Click OK twice.
8. Change the dates, then hit Refresh.

QuickBooks auto adjusts the contribution to the next paycheck if it has a payroll that doesn't have a company contribution. If it has overpayment, you can create a liability adjustment to correct it. Please refer to this article to guide you through the process: Adjust payroll liabilities in QuickBooks Desktop Payroll.

I've also added this resource in case you want to make some changes to the company contribution for future reference: Set up and manage company contributions.

You're welcome to post again if you need further assistance managing payroll items in QuickBooks. We're always here to help you.