restaurant tips uncollected fica and mcare

I appreciate you contacting our support team, jkcpa1. I understand that staying compliant with employment tax laws and regulations is crucial to avoid potential fines and penalties. In your case, it would be best to seek assistance from a tax advisor or accounting professional.

QuickBooks provides a way to track and report payroll taxes and deductions. However, adding payroll items for the uncollected FICA and Medicare taxes for tipped employees isn't possible. Alternatively, you will need to report this manually outside QuickBooks.

You might also want to learn how to set up your employees as exempt in QuickBooks once they meet the specific requirements. This way, they won't have any Federal or State Withholding taxes deducted from their paychecks. 

Accurate tracking and reporting of FICA and Medicare taxes for your employees can keep accurate and up-to-date records. The best course of action is to consult a tax advisor, jkcpa1.

Yes you have to override the 941 because QB just calculates it and pays no attention to the under collected amount. I have a client that has 3 restaurants where this occurs regularly.

One other thing that doesn't make sense to me is that one one of them with the W2's i was able to just put the difference in box 12 of the W-2 and was able to submit to the SSA thru QB no problem. Now I"m on restaurant #2 and processing the W-2's and QB isn't letting me. It's saying there is an error. DUH. I have the exact differnce posted in box 12 with code B as it was Medicare uncollected and this one isn't letting me submit. Makes no sense to me why I could submit on one client with uncollected Medicare with a box 12 amount balancing the Medicare difference and now I'm on a different entity and it won't recognize the Box 12 adjustment.

This is so frustrating!!! I need to just move them over to my payroll system where it automatically would be taken care of. Why doesn't QB recognize this?