Employees can participate in HSA (Pretax) and Simple IRA (Pretax) deductions. The three that participate in HSA mc/ss taxes aren't computed properly. Infact, the HSA Pretax is added to the gross wage and all is taxed together. January 2022 taxes computer correctly February 4 (only pay so far) this became an issue. Literally days with QB Payroll 'experts' has failed to resolve the issue.
Let me step in and assist you in fixing inaccurate Social Security and Medicare Taxes calculation in your employee,
You can update your QuickBooks Desktop and payroll tax table to the latest release version. Since when the two product is an outdated version, it might cause inaccurate calculation on your taxes.
You can follow these steps on how to update your QuickBooks Desktop account manually:
For more detailed information on updating your QuickBooks Desktop account, visit this article: Update QuickBooks Desktop to the latest release.
After that, you can update your payroll tax table to complete the troubleshooting. Rest assured that you'll get the most current and accurate rates and calculations for state and federal tax tables.
You can read this article to learn how QuickBooks calculate taxes: How QuickBooks calculates payroll taxes.
If you have other questions or concerns, please let me know. I'll be around for you. Take care and have a great day ahead.
I have repeatedly done these things with the guidance of QB Experts. We have made 'dummy' new HSA deductions and tested that, same issue. I believe the issue is in the setup of the HS Pretax account AND in payroll checkup the deduction is added back to into the taxable wage. Example: Three columns: Amount - zero, Wage $200, Income subject to tax $200. This causes the pretax deduction to be added back into the gross wage and taxed. If I adjust that 'payroll adjustment' created by payroll checkup to zero, the taxes are computed correctly.
We offer Simple IRA too. We have ours set up as a Payroll Item deduction. Simple IRA is pretax so it is off of Gross Wages.
For Tax Tracking Account: We have Simple IRA.
We also offer up to 3% company match which is set up as a Payroll Item Company Contribution.
I hope this helps some.
We offer a simple IRA and that has worked perfectly. It is the HSA that continues to create issues. It is pretax dollars from employee payrolls. Only three participate, therefore there are only three that QB calculates the taxes incorrectly for both medicare and social security.
I'm still looking for a solution.
I appreciate you for getting back on this thread, Cmdermott. It's rough when the HSA continues to create issues. I'm here to help you with that.
Payroll tax and wage calculations are derived from payroll data and transactions entered into QuickBooks Desktop. Your tax set up and payroll items should be set up correctly to ensure accurate tax calculations. For more tips in making sure the set up is correct, I'd suggest checking out these articles:
You can follow these steps to verify how a payroll item is set to calculate in the program:
For more details, please review the following sections in this article: Payroll Items on Paycheck aren't Calculating or are Calculating Incorrectly.
I'd also recommended running payroll reports on a regular basis to review your employee(s)' payroll data so you can catch mistakes before the tax filing season. You can use the Payroll Detail Review report to verify your employees' year-to-date (YTD) wage and tax calculations.
Additionally, it's easy to view your employee data and track your business finances with QuickBooks. To do this, you can open any Excel-based payroll reports that suit your needs.
You can always get back here and post a question if you need help resolving QuickBooks issues, Cmdermott. I'm always around to help. Have a good one.