How to determine the correct amounts for Social Security or Medicare for the current year-to-date

1. Open menu 5-3-7 Payroll Audit and click Repair.  If errors persist, continue with step 2.
2. Open menu 5-3-1 Payroll Calculations and verify the Default Rate, Default Max, and Max Type information for Employee FICA, Employee Medicare, Employer FICA, and Employer Medicare are correct.
   1. If the Rate, Default Max and Max Type is not correct, correct the information; then, from the menu bar of the applicable menu 5-3-1 FICA or Medicare payroll calculation, click Options, Update Employees, Default Rate and Maximum, All Employees and run a 5-3-7 Payroll Repair again.  If the payroll audit errors remain, proceed with step 3.
3. Print the 5-1-1-26 Employee List~ with Earnings report for the employees who appear on the payroll audit report, to determine whether the FICA, Medicare or both, are incorrect by quarter.
4. Multiply the FICA Wages in the Quarter 1 column by .062 for Employer FICA and .062 for Employee FICA.
5. Multiply the Medicare Wages in the Quarter 1 column by .0145 for Employer Medicare, and .0145 for Employee Medicare.
6. If the withholding amounts for the employee and employer calculations in the Quarter 1 column are correct, repeat the process for Quarter 2, Quarter 3, and Quarter 4.
7. After you verify the quarter amount that is incorrect, subtract the amount that appears on the report for the individual employee and employer calculations from the amount that appears on the 5-3-7 Payroll Audit for the individual employee and employer calculations. Use the differences between these two amounts to make your adjustments. You can now begin entering 5-2-2 Hand-Computed payroll records.

 

How to enter 5-2-2 Hand-Computed Payroll Records

1. Open menu 5-2-2 Payroll Records.
2. In the Employee field, select the employee number.
3. Enter the Period Start, Period End, and Check Date as the last day of the affected quarter.
4. From the Payroll Type pick list, select 3-Hand Computed.
5. In the Check# box, type 9999.
6. Ensure the Direct Deposit check box is not selected.
7. In the Quarter box, type the correct quarter number.
8. The State box pre-fills from the 5-2-1 Employee's record.
9. Clear any amount in the Salary box.
10. Click the Calculations tab of the 5-2-2 Payroll record.  You can now begin entering your adjustments.

 

How to enter your adjustments on the 5-2-2 Hand-Computed Payroll record

If the Payroll Audit error Balance number is higher than the Audit number on the 5-3-7 Payroll Audit report do the following:

1. In the Calculation column, select the FICA and Medicare payroll calculations that appeared on the payroll audit report for the employee.
   1. If  Employee FICA or Employee Medicare was flagged in the payroll audit error, you must also add the Payroll Advance (Tax Type 14- Advance Deduction) payroll calculation to the Calculations column. 
   2. If only the Employer FICA or Employer Medicare items were flagged on the payroll audit report, there is no need to add the Payroll Advance (Tax Type 14-Advance Deduction) item to the Calculations column, because Employer FICA and Employer Medicare do not affect the employee's net pay.
2. In the Amount column next to Employee FICA, Employer FICA, Employee Medicare, and Employer Medicare enter the adjustment amounts as negative numbers.
3. In the Amount column, next to the Payroll Advance calculation, enter the total of the Employee FICA amount plus the Employee Medicare amount as a positive value. When this is correct, the Net Pay amount of the payroll record is zero (blank).  
   1. Sage 100 Contractor will add the employee's over-withheld amount of FICA and/or Medicare to the Advances Due field (as a negative number) of their 5-2-1 Employees Record and reimburse the employee the next time a payroll record is generated for the employee.
4. Click File, Save.
5. After you create the hand-computed checks for each employee, open 5-3-7 Payroll Audit and click Repair.
6. When no payroll audit errors appear on the 5-3-7 Payroll Audit, open menu 5-2-6 Post Payroll to GL and post the hand-computed checks to the correct posting period and cash account.

 

If the Payroll Audit error Balance number is lower than the Audit number on the 5-3-7 Payroll Audit report do the following

1. In the Calculation column, select the FICA and Medicare payroll calculation that needs to be adjusted.
   1. If the Employee FICA or Employee Medicare was flagged in the payroll audit error, you must also add the Payroll Advance (Tax Type 14- Advance Deduction) payroll calculation to the Calculations column.
   2. You must do this because Sage 100 Contractor will not allow you to post a payroll record with a negative Net Pay amount.  Sage 100 Contractor will add the employee's under-withheld amount of FICA and/or Medicare to the Advances Due field (as a positive number) of their 5-2-1 Employees record and deduct all or part of that amount from the employee's next payroll record.
   3. If only the Employer FICA or Employer Medicare items were flagged on the payroll audit report, there is no need to add the Payroll Advance (Tax Type 14-Advance Deduction) item to the Calculations column, because Employer FICA and Employer Medicare do not affect the employee' net pay.
2. In the Amount column next to Employee FICA, Employer FICA, Employee Medicare, and Employer Medicare enter the adjustment amounts positive numbers.
3. In the Amount column, next to the Payroll Advance calculation, enter the total of the Employee FICA amount plus the Employee Medicare amount as a negative value, to create a net zero paycheck.
4. Click File, Save.
5. After you create the hand-computed checks for each employee, open 5-3-7 Payroll Audit and click Repair.
6. When no payroll audit errors appear on the 5-3-7 Payroll Audit, open menu 5-2-6 Post Payroll to GL and post the hand-computed checks to the correct period.