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Maryanne-M
Level 1

How do I fix a problem with the Medicare and Social Security tax calculation for two salaried employees?

After I ran the first payroll in QuickBooks Online and the support team at Intuit entered the year-to-date payroll history for my employees, the Medicare, Social Security and Local payroll taxes were not being applied to the only two salaried employees I have.  I added a "dummy" salaried employee and ran a payroll just for that "dummy" employee and I did not have that problem.  Has anyone experienced this, and if so, what did you do?  Or can anyone tell me how I might go about fixing this critical issue?
4 Comments 4
Kevin_C
QuickBooks Team

How do I fix a problem with the Medicare and Social Security tax calculation for two salaried employees?

Let's get this resolved, Jeannie. I admire you for sharing the complete details of your concern about payroll taxes not being calculated on your two salaried employees in QuickBooks Online (QBO). Allow me to provide the reason and steps to make sure it is correctly calculated.

 

Let's go to your employees' profile and review it. To guide you further, please follow these steps to proceed:

 

  1. Go to the Payroll menu, then Employees.
  2. Select your employee.
  3. From Tax withholding, click Edit.
  4. Make sure the Social Security and Medicare taxes from the Tax exemptions sections are unchecked.
  5. When finished, select Save.

 

Regarding the generated payroll checks, you'll have to delete or void them and recreate them with the correct tax exemptions. Follow these steps to delete or void the paycheck:

 

  1. Navigate to the Payroll menu, then choose Employees.
  2. Click on the Paycheck list tab.
  3. Choose the paycheck(s) to delete or void, then tap Delete or Void from the Action column.
  4. Hit Yes to confirm.
    Capture.PNG

 

In case you are unable to delete or void the paycheck, I recommend reaching out to our Payroll Support Team to assist you with the process. They use specific tools to pull up your account in a safe environment and help you void/delete the paycheck.

 

Once done, you can now recreate the paychecks for your employees using their updated details. This way, you'll be able to report their payroll and tax info to the appropriate agencies on time.

 

I've also added this article that will help you identify what specific report you're going to use to keep track of your books about payroll: Run payroll reports.

 

Please come back and keep us posted on your progress in recreating the paychecks. I'm here to ensure this gets resolved. Take care and have a great day ahead!

Maryanne-M
Level 1

How do I fix a problem with the Medicare and Social Security tax calculation for two salaried employees?

Kevin - thank you for the information.  However, this was not the problem.  I had already ensured the box for Social Security & Medicare under Exempt taxes was unchecked and have communicated with Intuit phone support on 3 occasions for multiple hours with no solution.  I did follow your steps to check the tax set-up for the employees again, then deleted the checks and recreated them as you indicated, and the recreated checks had the same issue - no Social Security or Medicare taxes applied to the payroll for them.  Do you have any other suggestions?  I am desperate as I have to submit payroll again tomorrow.  TYIA

Candice C
QuickBooks Team

How do I fix a problem with the Medicare and Social Security tax calculation for two salaried employees?

Good afternoon, @jeanniepenrod-se

 

I appreciate you coming back and giving us some additional information. 

 

To verify if the paychecks have the correct deductions or if they're being under/over withheld, I recommend running the Payroll Details report. If the report doesn't bring anything up, then I recommend getting back in touch with our Customer Support Team

 

I hope this helps and gives you the details you need. I'm only a post away if you need me again. Bye for now! 

Maryanne-M
Level 1

How do I fix a problem with the Medicare and Social Security tax calculation for two salaried employees?

Thank you for the follow-up, however this was not the solution either.  I have contacted Intuit QB Online support and hopefully they can determine what the problem is and how to fix it.  

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