Employees and payroll
Thanks for joining this thread, mejustme. I'm here to share some insights and help you fix the issue with incorrect calculations for your payroll tax deductions in QuickBooks Desktop (QBDT).
I suggest ensuring you have the latest release of your tax table and that your QBDT is up-to-date. This way, you'll always have the latest features and fixes.
One possible reason why your FICA and Medicare deductions are calculated incorrectly is because of their separate wage base limits for Social Security and Medicare taxes. You can run a tax and wage summary report to verify if they have reached the limit you set up to withhold for a certain period.
Furthermore, I suggest checking the setup of your payroll item first before reviewing your payroll summary report for your payroll runs.
If the payroll item is set accordingly, follow these steps to review the payroll run:
- Go to the Reports menu.
- Choose Employees & Payroll, then click Payroll Summary.
- Change the filters to display the paychecks.
If everything is accurately set up, you can revert your employees' paychecks and recreate them to ensure taxes are calculated correctly. Let me show you how:
- Go to the Employees menu then select Pay Employees.
- Tap Scheduled Payroll or Unscheduled Payroll.
- Click Resume Scheduled Payroll. You’ll see some employees’ names highlighted in yellow. These are the employees that have had changes.
- Right-click on the employee name that’s highlighted in yellow.
- Click Revert Paychecks.
After that, recreate those paychecks and review if the FICA and Medicare withholdings are calculated correctly.
Leave us a comment if you still need help or have other questions about payroll deductions in QBDT. We're always here to help. Have a wonderful day!
