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How do I change my FICA rate. The program has the wrong amount in it for the FICA rate.

The percentage is wrong in the program causing the amount withheld to be wrong for my employees

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Best answer a week ago

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Established Community Backer ***

This makes no sense: "Otherwise, you can manually update...

This makes no sense: "Otherwise, you can manually update the FICA rate in the Payroll Item List."

The Tax Table items are set by the Tax Table subscription. Since after 2011, Social Security is 6.2% and Medicare is 1.45%. That hasn't changed and the tax table is likely Not Wrong.

Chris, can you give more info, please?


2 Comments
Established Community Backer ***

This makes no sense: "Otherwise, you can manually update...

This makes no sense: "Otherwise, you can manually update the FICA rate in the Payroll Item List."

The Tax Table items are set by the Tax Table subscription. Since after 2011, Social Security is 6.2% and Medicare is 1.45%. That hasn't changed and the tax table is likely Not Wrong.

Chris, can you give more info, please?


QuickBooks Team

Thanks for letting us know your concern, chris.delaune. I...

Thanks for letting us know your concern, chris.delaune.

I can help you update the FICA rate to correct the employee withholdings.

Since there were no changes for the FICA rate, I suggest updating QuickBooks Desktop to the latest release to ensure it has the correct compliance information. After which, download a payroll tax table update.

Here's how:

  1. Go to the Employees menu.
  2. Select Get Payroll Updates.
  3. In the Get Payroll Updates window, click the Download entire payroll update button.
  4. Click the Update button.
  5. Click OK when prompt that a new tax table has been installed on your computer.

Once done, please check if there are changes on the FICA rate. For the detailed steps, you may visit the following link about QuickBooks latest payroll tax table: https://community.intuit.com/articles/1763158.

If the above steps don't work, please check for paychecks that run an incorrect amount for FICA. QuickBooks automatically corrects the next payroll if there are incorrect taxes withheld on the previous payroll.

To check taxes being withheld, you may pull up the payroll summary report. Otherwise, you can manually update the FICA rate in the Payroll Item List.

Here's how:

  1. Go to the Lists menu.
  2. Select Payroll Item List.
  3. Locate the Social Security and Medicare item.
  4. Verify if the tax rates are correct.
  5. If you need to manually update your state tax rate, just double-click the payroll item.
  6.  Click Next until you reach the Company tax rates for 2018 window.
  7. Enter the correct tax rate and click Next.
  8. Then, click Finish.

Check out this article for more in-depth information: https://community.intuit.com/articles/1763372.

For additional references, look into the following articles below:

If you need to correct payroll affected by the incorrect FICA rate, you can create a payroll liability adjustment.

Here's how:

  1. Go to Employees menu.
  2. Select Payroll Taxes and Liabilities.
  3. Click Adjust Payroll Liabilities.
  4. Supply Date and Effective Date.
  5. Choose between Company and Employee adjustment.
  6. In the Taxes and Liabilities table, enter all necessary information.
  7. Then, click the Accounts Affected button to select where this adjustment will affect.
  8. Click OK.
  9. in the adjustment window, click OK to save adjustment.

For more information and reminders in creating a payroll liability adjustment, just refer to this article: https://community.intuit.com/articles/1437271.

This information should correct your taxes in QuickBooks. Keep me posted on this by leaving a comment below. I'll be around if you have other questions about QuickBooks. Have a nice day!