Version 9.8 Payroll Update 12 has not fixed the problem it was intended to fix

SUGGESTED

Accounting Update 10 and Payroll Update 12 are installed on the server and workstations. Confirmed by attempting to run the install again, and received the warning that it had already been installed, and chose to install it again anyway.

When doing the dry run of W2s, three employees, being the only employees with earnings in excess of $200,000, were flagged as not showing the correct Medicare tax.  

Will have to use the manual workaround that was offered in Alert 14-1A if we didn't want to install Payroll Update 12.  

Has anyone else seen this problem after installing the Payroll Update 12?

Art Minds

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    SUGGESTED

    Good Morning!

    Another work around for you would be to create a formula which would combine the prior year tax for both MED and MEDADDL.

    Below is an example of that formula:

    Formula name:  Box 6 MED PR YR

    Lookup(Prior Year Tax(PR Employee Tax), Employee(PR Employee),1,"MED")+Lookup(Prior Year Tax(PR Employee Tax),Employee(PR Employee),1,"MEDADDL")

    Keep in mind that this formula would combine the prior year tax amounts.  The "1" is necesssary in the formula as these are federal level taxes.

    After creating this formula you would add it to your W2 form (tools/modify forms/W2 forms), and place this on Box 6.

    I hope this helps!

    Gaylene

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    Art,

    Just as a double check, I would run the Subject-to Employee or Prior Per Subject to Employee reports and confirm that the MEDADDL tax was withheld from these employees. If it's not on the W-2 after the update, there could also be a problem with the totals balancing on the From 941 as well,

    If it was withheld on the employee, I would verify that there isn’t an override for box 6 on the W-2 form in Tools, Modify Forms, W-2 forms.

    Good Luck!

    Jesse