Hello there, @natashasmith.
There are reasons why Medicare and SS do not calculate. These are due to the following:
- QuickBooks is not updated, or there is an internet interruption during the update.
- Using the incorrect tax table version.
- The gross wages of the employee's last payroll are too low.
- Total annual salary exceeds the salary limit.
You can review the Payroll Detail report to verify the taxes withheld and the difference. Then, if QuickBooks over withheld the Social Security and Medicare taxes, there are two ways to resolve this.
Here's how:
- Option 1: Apply the taxes to your next paycheck. QuickBooks has an automatic calculation feature for rate-based taxes deducting overpaid taxes to your next payroll run.
- Option 2: You can offset the overpayment by creating a liability adjustment.
For the steps on creating adjustment, see this article: Adjust payroll liabilities in QuickBooks Desktop.
If there's anything else you need help with, visit the Community again. I'm here to answer it for you. Have a good day!
