I appreciate you for sharing the error message you received, @travis-o-johnson.
The error message usually appears when you entered an incorrect tax deduction. Both Medicare and Social Security are based on a fixed rate. You’ll want to ensure that the taxable amount for Social Security is 6.2% and 1.45% for Medicare.
For more details about this, check out these articles for reference:
Additionally, here’s an article you can read for additional guidance in setting up your employees year to date pay: Set up a prior payroll for QuickBooks Online Payroll.
Once all is set, you might you can run your payroll reports to ensure your accounts are well accounted for.
In case you have other questions in mind, leave a reply below with more details. I’ll swing back in action. Have a wonderful day ahead!
I am confused, first the point of payroll is so I don't have to look up and find what the tax deductions are that is payrolls job. Second payroll never asked and there is no place for me to add the percentages you are asking about. I can put an allowance which I have set to 0.
Let me take it from here, Travis-o-johnson.
You'll have to enter the payroll info for the whole year. You'll encounter the error message once the tax amounts are incorrect.
Check the articles my colleague provided at the top. Or, you can contact us to create a payroll correction to ensure your payroll data is accurate. Here's how:
Once it's fixed, you can create paychecks without any issues.
Visit us anytime if you have other payroll concerns. We're just one post away.
From the article your colleague provided it's about Wage Base Limits and it clearly states that you can't modify them (see below). And if I could call during normal business hours I would. I am the executor of my fathers estate and I have a day job that is over 60 hours a week. This needs to be taken care of after hours or on weekends. Right now the solution being offered doesn't seem to make any sense. If you can update pay roll to fix this error. So if you could please give clear instructions on what needs to happen I would be much obliged. Thank you!
"How to update wage base limits
While you can't personally modify wage base limits, you do need to update them every year if you use QuickBooks Desktop."
Allow me to jump in on this thread, @travis-o-johnson.
To fix the error when adding payroll, you'll need to multiply the taxable amount of the employee to the rate of social security. You’ll want to ensure that the rate for Social Security is 6.2% and 1.45% for Medicare.
For the percentage, you don't have to add it since it'll automatically show. Also, you don't need to adjust the wage base limit since it is automatic as well. You'll want to ensure the tax amount is correct to avoid any errors.
Additionally, I've included an article that will guide you in ensuring your compliance with federal tax regulations: Internal Revenue Service Payroll Tax Compliance.
We're always here to help. Have a great day!
This is all great information but it doesn't get me passed the error. What specific steps do I need to actually do to get to the next screen without this error preventing me from adding a person to payroll?
I appreciate you for posting here in the Community, @travis-o-johnson.
Let me share some clarification about the error when adding payroll in QuickBooks Online.
The only way to get to the next screen is to enter the correct amount from the required fields. You'll need to take the gross pay of your employees and multiply the amount by 6.2% for Social Security, then 1.45% for Medicare.
Since the error persists after following the troubleshooting steps above, I recommend you proceed with contacting our Payroll Support Team. One of them will be able to take over and help you with the required information.
Additionally, I recommend the following resource, which has video tutorials to help a user learn about entering prior payroll in QuickBooks: Set up a prior payroll for QuickBooks Online Payroll.
Please let me know if there is anything else I can do to help by clicking the Reply button below. Have a great day ahead.