[David Buzzell]

We have seen where the Medicare gets calculated taking into consideration the full amount of a medical deduction, but then due to the size of the check the deduction gets reduced, and the medicare amount taken is also reduced.   The issue is the Employee Medicare wages are reported as if the full amount of the deduction had been taken.

Example:
1st check – correct and all balances
Gross=778.53
Medical Deduction=73.11
Medicare wages=705.42
Medicare=10.23

2nd Check
Gross=135.13
Medical Deduction=73.11
Medicare wages=62.02
Medicare=.90

Combined Medicare wages being reported 767.44

But what is happening is:
2nd Check
Gross=135.13
Medical Deduction=73.11 – reduced to 61.80 (net of check after child support)
Medicare wages=(Should be 135.13 -61.80=73.33)
Medicare=(Should be 73.33*.0145=1.06)

Combined Medicare wages should be 705.42+73.33=778.75
Federal wages are correct
But both Medicare and SS wages reflect the full amount medical deduction – even though the tax calculation does not and the full amount of the medical deduction was not withheld.

Has anybody else encountered this?
Is there a way to have the calculation match reality?

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David Buzzell
CIO
The Sedona Group
Moline IL
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[Carolyn Brown]

This could have something to do with the order of sequencing of your deductions.  You may want to look at that first.
Hope this helps.

thanks

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Carolyn Brown
Payroll Admin
Lutheran Services Carolinas
Salisbury NC
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[Sherlene Sorenson]

I agree that it likely has to do with your deduction sequencing.

There is not a way to force the amount of FICA Medicare tax.

If you need to adjust something after the fact, it will require a Manual Check Adjustment.

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Sherlene Sorenson
Sr Implementation Consultant
InterDyn BMI
West Fargo ND
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