Follow the information below to troubleshoot why your taxes are calculating more (or less) for the tax period. 

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. 
   • Check PR, Taxes, Maintain Tax Tables (US), Allowances Limits and Rates for FICA (OASDI and Medicare) or FUTA
   • For SUI or SDI check PR, Taxes, Activate States. Always enter percentages as whole numbers
      EXAMPLE: Enter 6.2% as 6.20.
3. The taxes will self-adjust on the next payroll.
    NOTE: If no further payroll checks will be processed or the employee has reached the limit for SUI or FICA taxable pay, contact Sage Customer Support. 
   

Someone used manual payroll calculation to process a previous payroll or bonus check

• 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 

The taxable status of an existing deduction or other pay was 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 will result in incorrect taxable pay and 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.

An employee has met the threshold for extra Medicare withholding

• 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