How do I refund a household employee who made less than $2100 in 2018 for FICA taxes that I withheld?
Good to see you here in the Community, cindyrayno.
You've come to the right place. I have just the steps you'll need to refund the employee that made less than $2100 in 2018 for FICA taxes.
An ideal way to handle this is to create a non-taxable reimbursement payroll item which will be used when you create the employee's paycheck. The steps below will guide you on how to create it:
To set up the payroll item in QuickBooks
All of this information and more is available from our guide on how to set up payroll item. From there, all you need to do is enter this payroll item in the Other Payroll Items section when you create the paycheck.
That should do it! With these resources, I'm confident you'll be able to apply the reimbursement on the next payroll run like a pro!
Keep in touch with me here if there's anything else you need. I always got your back. Thanks for reaching out, wishing you and your business the best.
Thanks, this is helpful. I found out when I processed W-2's that I should not have withheld the FICA taxes on employees who made less than $2100. How do I fix the W-2?
Thanks for coming back, cindyrayno.
After creating a non-taxable reimbursement, you'll need to create negative payroll adjustment to remove the tax amount in the W-2 form. Please refer to this article for the steps: Adjust Payroll Liabilities.
If you have any questions, let us know. Thanks!