Social Security and Medicare Deductions

QB Issue Resolution:

I want to ensure your taxes are calculating correctly.

There are a few reasons why SS and Medicare taxes are calculating incorrectly. Consider the following:

QuickBooks is not updated or there is an internet interruption during the update.
Using the incorrect tax table version.
Employee’s YTD is off.

To isolate the problem, let’s make sure you’re able to download the latest tax table update version 21902. You can check that by following these steps:

Go to the Employees tab.
Select Get Payroll Updates.
You’ll see the tax table version beside the Payroll Update Info button. (Please see screenshot.)

If you’re using the correct version, let’s check if there are any discrepancies or zero deductions for the SS and MD amounts on the employee’s paycheck. We can use the Payroll Detail Review report to verify the taxes withheld and the difference. Here’s how:

Go to the Reports menu.
Select Employees & Payroll.
Choose Payroll Detail Review.
Click Customize Report tab (if you want to run a specific report).
Choose the Display tab and select the date range from drop down list or fill in the From and To dates.
In the Filters tab, choose Payroll Item from the Filter section. Select Multiple payroll items in the Payroll Item drop-down.(See screenshot.)
Select Medicare Company, Medicare Employee, Social Security Company and Social Security Employee. (See screenshot.)
Once done, click OK twice.

On the report, review if the checks have the correct deductions. You can get the correct calculation by multiplying the total wage base of each payroll items to its corresponding tax rate. If the figures are correct, then there is no action to be taken next.

However, if QuickBooks overwithheld the SS and MD taxes, there are 2 ways to remedy the situation. 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. Here’s an article with the complete steps on how to create an adjustment: Adjust payroll liabilities

Resolution for Issue 'Social Security and Medicare Deductions' available: Yes (Solved).
Source: Intuit Community forum.

Social Security and Medicare Deductions: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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