I set up our first payroll. So I tested the payroll and when i put in hours it calculated social security wrong. It is like 3 times the right amount. tried it on another employee same thing. the calculated tax is like 27%. I can't find an error.
What is going on??
Hi there, fbmarion.
Good to see you here in the Community. I'm here to help in determining why your Social Security isn't calculating correctly.
QuickBooks calculates the taxes based on your employee's Pay Frequency, Marital Status, Allowances, and Gross Pay. If one of them is wrong, that would result in incorrect taxes in show up on their paychecks.
That being said, it would be a good idea to review your employee's payroll information and make sure they're set up correctly. The steps below will guide you on how to do it:
That should do it. I'm confident that your employer and employee taxes will be correct moving forward. In the meantime, I'd recommend that you get in touch with the Online Payroll Support Team.
They can pull up your account in a safe environment and help you make the payroll corrections for your current tax liabilities. Here's how you can contact them:
Contact Intuit Online Payroll Support
Keep me posted with the result, I want to make sure this is taken care of. Thanks again for dropping by, I'll be standing by for your response.
Jumping in to share another resolution, fbmarion.
If you're using Desktop Payroll, it's possible that there's a YTD entry for Social Security that is smaller than the correct amount. QuickBooks might be auto-correcting the calculation to make sure that the YTD amount is exactly 6.2% of the taxable amount.
Let's run a report to check what's causing the discrepancy. Here's how:
You can also see this article for more possible reasons why cases like this can happen: QuickBooks Desktop Calculates Wages And/or Payroll Taxes Incorrectly
Please let me know if you have follow-up questions. I'll get back here to help you again.