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sscom88
August 5, 2020
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No Medicare or Social Security Tax taken out of one employee's check

  • August 5, 2020
  • 1 reply
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I am using Quickbooks Desktop Payroll and I have one employee who's paycheck didn't have any deduction for Medicare or Social Security for both the company and the employee. I changed his W-4 and it deducted correctly for one payroll and now it is not making the deduction and I haven't made any changes to his account. How can I get QuickBooks to correctly deduct his Medicare and Social Security?

Best answer by MJoy_D

Let’s check if there are any discrepancies or zero deductions for the Social Security and Medicare amounts on the employee's paycheck, @sscom88.

 

We can use the Payroll Detail Review report to verify the taxes withheld and the difference. 

 

Here's how:

  1. Go to the Reports menu and select Employees & Payroll.
  2. Look for Payroll Detail Review.
  3. Click Customize Report tab and choose the Display tab and select the date range from the drop-down list or fill in the From and To dates.
  4. In the Filters tab, choose Payroll Item from the Filter section. Select Multiple payroll items in the Payroll Item drop-down.
  5. Select Medicare Company, Medicare Employee, Social Security Company and Social Security Employee. 
  6. Once done, click OK twice.

On the report, review if the checks have the correct deductions. 

 

You can get the correct calculation by multiplying the total wage base of each payroll items to its corresponding tax rate. If the figures are correct, then there is no action to be taken next.

 

However, if QuickBooks over withheld the Social Security and Medicare taxes, there are two ways to resolve this.

 

Here's how:

  • Option 1: Apply the taxes to your next paycheck. QuickBooks has an automatic calculation feature for rate-based taxes deducting overpaid taxes to your next payroll run.
  • Option 2: You can offset the overpayment by creating a liability adjustment. 

Here's an article with the complete steps on how to create an adjustment: Adjust payroll liabilities.

 

Also, here's a guide on how to correct year-to-date (YTD) additions or deductions on a paycheck: Correct year-to-date (YTD) additions or deductions on a paycheck when the wrong tracking type was used.

 

Let me know if there's anything that I can assist. Keep safe and have a wonderful day!

1 reply

JasroV
JasroV
August 5, 2020

Thanks for sharing your issue, @sscom88.


I recognize the importance of running your payroll accurately. Let’s update your payroll tax table to the latest release to isolate this uncommon issue. Before doing so, let’s update your QuickBooks Desktop (QBDT) software to the latest release.

 

This way, we’ll ensure your software is up to date with the latest features and fixes. Here’s how to do it in your QBDT software:

  1. Go to the Help menu and select Update QuickBooks Desktop.
  2. Select the Update Now tab. 
  3. Click Get Updates to start the download.
  4. When the download finishes, restart QuickBooks.
  5. Accept the option to install the new release when prompted.

Once done, update your payroll tax table:

  1. Go to the Employees menu.
  2. Select Get Payroll Updates.
  3. Click the Download Entire Update checkbox.
  4. Then select Download Latest Update.

For more information in updating your QBDT software and payroll tax table, check out these useful articles:

Additionally, I encourage checking our QuickBooks Support page for future reference. There, you can learn some tips in managing your payroll. Just browse a topic for QBDT payroll.

 

Keep in touch with me if you need more assistance in running your payroll. I’ll be around to back you up. Keep safe and stay healthy.

S
sscom88Author
August 5, 2020

I have already done both of those things and it did not change his paycheck.

MJoy_D
MJoy_DAnswer
August 5, 2020

Let’s check if there are any discrepancies or zero deductions for the Social Security and Medicare amounts on the employee's paycheck, @sscom88.

 

We can use the Payroll Detail Review report to verify the taxes withheld and the difference. 

 

Here's how:

  1. Go to the Reports menu and select Employees & Payroll.
  2. Look for Payroll Detail Review.
  3. Click Customize Report tab and choose the Display tab and select the date range from the drop-down list or fill in the From and To dates.
  4. In the Filters tab, choose Payroll Item from the Filter section. Select Multiple payroll items in the Payroll Item drop-down.
  5. Select Medicare Company, Medicare Employee, Social Security Company and Social Security Employee. 
  6. Once done, click OK twice.

On the report, review if the checks have the correct deductions. 

 

You can get the correct calculation by multiplying the total wage base of each payroll items to its corresponding tax rate. If the figures are correct, then there is no action to be taken next.

 

However, if QuickBooks over withheld the Social Security and Medicare taxes, there are two ways to resolve this.

 

Here's how:

  • Option 1: Apply the taxes to your next paycheck. QuickBooks has an automatic calculation feature for rate-based taxes deducting overpaid taxes to your next payroll run.
  • Option 2: You can offset the overpayment by creating a liability adjustment. 

Here's an article with the complete steps on how to create an adjustment: Adjust payroll liabilities.

 

Also, here's a guide on how to correct year-to-date (YTD) additions or deductions on a paycheck: Correct year-to-date (YTD) additions or deductions on a paycheck when the wrong tracking type was used.

 

Let me know if there's anything that I can assist. Keep safe and have a wonderful day!

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