This isn't the impression that I'd like for you to be left with, @ylouise.
We're always compliant with the state rules and regulations. With this, I'm here to share with you the steps on how to withhold the PFML tax on the cash tips.
Let's first review the employees' profile to see if the cash tips and MA PFMLtax are properly set up. This helps us determine the possible cause of the issue and ensures the accuracy of your employee records. Let me guide you how.
Go to Workers from the left menu.
In the Employees tab, select the employee's name.
Click the Edit (Pencil) icon beside Pay.
Make sure the Cash Tips is included in the Additional Pay section.
In the withholding section, click Edit.
Verify the information in the Massachusetts Paid Family and Medical Leave Contribution Setup section.
The screenshot below shows you the last two steps.
If these are properly set up, you'll need to delete and recreate the paychecks. This lets the system to include the PFML tax to compute on the cash tips.
However, if the steps above don't make any difference, I'd suggest contacting our Customer Care Team. They can help you recalculate the missing taxes. This ensures the taxes and cash tips are reported correctly on the employees' W-2's and other state forms. Here's how:
Go to the Help menu at the upper right.
Choose Contact Us.
Type in your concern.
Click Let’s talk.
Select either Get a callback or Start messaging.
Enter your contact info.
Choose either Confirm my call or Send message.
You can always run any payroll reports to ensure your employees and payroll info are accurate. To view the list of reports and how to access them, go through this article: Run Payroll Reports.
You can also visit this link: MA Payroll Tax Compliance. This website provides you the details on your state tax forms, withholdings, unemployment tax, e-file and pay information, and employer registration.
Please let me know if you need anything else. I'll gladly help, @ylouise.