The tax rate or limit changed

1. Run the PR, Utilities, Print Payroll Verification Report.
2. If any inconsistencies on percentage-based taxes, for example FICA, Medicare or FUTA.
3. Make sure the Allowances Limits and Rates are correct for FICA (OASDI and Medicare) or FUTA.
   • Go to PR, Taxes, Maintain Tax Tables (US), Allowances Limits and Rates
4. Make sure the SUI and SDI are correct.
   • For SUI or SDI check PR, Taxes, Activate States
   •  Always enter percentages as whole numbers
     For example, enter 6.2% was 6.20
5. The taxes will self-adjust on the next payroll.

 NOTE: If you have no further checks to process or employees have met limits, contact Sage Customer Support. 

Check processed using Manual payroll calculation

• When using Manual Payroll Calculation to process a payroll check, you must enter both taxable pay and taxes
  • If you don't enter taxable pay, the system will calculate less tax on the next payroll
  • If this happens, correct the taxable wages in Manual Payroll Calculation before calculating the employee's next timecard 

Deduction or other pay taxable status incorrect

• Check the taxable status of deductions and other pays
• If the taxable status needs to be corrected
  • Correct the taxable wages in Manual Payroll Calculation before calculating the next timecard
     NOTE: Changing the taxable status without adjusting employees' taxable pay results in incorrect taxable pay. This will affect tax reports

Mid-year changes to SDI or SUI

• Anytime the SDI or SUI rate changes, the system will adjust based on year-to-date taxable pay amounts 
• Sometimes a state changes the SDI or SUI experience rate mid-year without making it retroactive. You'll need to disable the self-adjusting feature for SUI and SDI so the system doesn't self-adjust

Paycheck includes Cash tip

1. If you add CASH tips to a timecard, the system calculates the OASDI and Medicare to withhold.
2. Run a PR, Reports, Payroll Register for the employee in question for year-to-date.  See if there are any CASH tips in the report totals on the last page.
   • If this was in error, void and reissue the check that included the cash tips.

Employee reached extra Medicare threshold

• The system calculates an additional 0.90 on Medicare wages over $200,000. This could cause an unexpected calculation

How percentage-based taxes are calculated