Recalculate Taxes on Vouchers - Medicare

Select the Paid By option from the following:

• Employer
• Employee

Paid By - Employer

1. Complete these fields:

In this field

Enter this

Employer ID

The employer ID, or click the Employer ID link to select the employer whose vouchers need to be recalculated.

Start Date

The start date from which you want to recalculate the Medicare taxes.

End Date

The end date up to which you want to recalculate the Medicare taxes.

Tax Rate

The Medicare tax rate in percentage.

Update Tax

Select one of the options from the drop-down:

• Yes - will update the Medicare taxes at the employer level.
• No - will not update the Medicare taxes at the employer level.
2. Select Create new adjustment vouchers, if you want to create new adjustment vouchers. Complete these fields:

Field

Description

Generate Separate Adjustments for each quarter
• If you select Yes, the Adjustment Date field is disabled, and tax adjustments per quarter is generated.
• If you select No, in the Adjustment Date field is enabled to select an effective date for the adjustment payroll vouchers of your choice. The date must be in the same year as the date range you entered above.

Note:  The Adjustment Date defaults to the last day of the quarter based upon the End Date entered above.

• If the end date is between 01/01/YYYY and 03/31/YYYY, the default adjustment date is 03/31/YYYY.
• If the end date is between 04/01/YYYY and 06/30/YYYY, the default adjustment date is 06/30/YYYY.
• If the end date is between 07/01/YYYY and 09/30/YYYY, the default adjustment date is 09/30/YYYY.
• If the end date is between 10/01/YYYY and 12/31/YYYY, the default adjustment date is 12/31/YYYYY.

Suppress Billing

Select one of the options from the drop-down:

• Yes - if you want to suppress billing for the adjustments.
• No - if you want to bill for the adjustments.

Calculate on CFE Register

This option is only available if the entered employer is configured as a Certified Employer And Limit testing is not on the Employer Register. This option should only be selected when recalculating taxes for a Certified Employer with employees working between multiple clients.

Select one of the options from the drop-down:

• No - This is the default option. When set to No, the process will continue using the normal process to recalculate employees based on the employer level register.
• Yes - When set to Yes, taxable limits will be recalculated on the Client Federal Entity Register between each client and not on the employer level as combined across clients.

Suppress Changes to Billing Registers

Select one of the options from the drop-down:

• Yes - will stop changes going to the billing register.
• No - will make changes to the billing register.

Include SUTA/FUTA Successor Wages

Select from the following options:

• No - This is the default option. When set to No, the recalculation utility will only look to actual vouchers on the employee record to determine tax amounts. Successor wage tax amounts will not be recalculated. If you have processed any rate adjustments through payroll related to successor wages, these amounts may be reversed with the recalculation utility when successor wages are not included.
• Yes - When set to Yes, the recalculation utility will include the successor wage and tax amounts in the results of the voucher recalculation utility. If successor earnings were entered for FUTA, and you are adjusting FUTA rates, the state will be determined based on the current home work location for the employee in the recalculation process. For example, if an employee has FUTA successor earnings and works in NY which has a FUTA rate increase, those wages would be included in the rate adjustment. If that employee has a home location of FL, the wages would not be included.

Note:  When recalculating taxes on vouchers to include successor wages, you cannot adjust the wage limit to be less than the successor wage amount. The successor wages would need to be adjusted manually. If you try to adjust the wage limit to be less than the successor wage amount when recalculating taxes on vouchers to include successor wages, the following sample error will generate notifying you that the employee has successor wages in excess of the taxable wage limit.

Error: Employee T16129 in company 925 has Successor Earnings in excess of the taxable limit. Cannot adjust that amount.

3. Select Update existing vouchers if you do not want to create new adjustment vouchers.

Paid By - Employee

4. Complete these fields:

In this field

Enter this

Employer ID

The employer ID, or click the Employer ID link to select the employer whose vouchers need to be recalculated.

Start Date

The start date from which you want to recalculate the Medicare taxes. form

End Date

The end date up to which you want to recalculate the Medicare taxes.

Tier One Tax Rate

The Tier 1 tax rate in percentage.

Note:  The Tier 1 tax rate in this field is currently generated from the Tax Rate Maintenance form under the Actions menu on the System Parameters form in the decimal format. Please override this to display a percentage (For example, 1.45 is the correct format instead of 0.0145)

Tier Two Tax Rate

The tax rate to use when the total taxable exceeds 200,000 US dollars.

Update Tax

Select one of the options from the drop-down:

• Yes - will update the Medicare taxes at the employee level.
• No - will not update the Medicare taxes at the employee level.

Update Existing Voucher Amounts or Create Adjustment Vouchers

Select one of the following options:

• Create new adjustment vouchers
• Update existing vouchers
5. Select Create new adjustment vouchers, if you want to create new adjustment vouchers. Complete these fields:

In this field

Enter this

Generate Separate Adjustments for each quarter

Select Yes or No.

• If you select Yes, the Adjustment Date field is disabled, and tax adjustments per quarter is generated.
• If you select No, the Adjustment Date field is enabled to select an effective date for the adjustment payroll vouchers of your choice. The date must be in the same year as the date range you entered above.

Note:  The Adjustment Date defaults to the last day of the quarter based upon the End Date selected. You can change

• If the end date is between 01/01/YYYY and 03/31/YYYY, the default adjustment date is 03/31/YYYY.
• If the end date is between 04/01/YYYY and 06/30/YYYY, the default adjustment date is 06/30/YYYY.
• If the end date is between 07/01/YYYY and 09/30/YYYY, the default adjustment date is 09/30/YYYY.
• If the end date is between 10/01/YYYY and 12/31/YYYY, the default adjustment date is 12/31/YYYYY.

Suppress Billing

Select one of the options from the drop-down:

• Yes - if you want to suppress billing for the adjustments.
• No - if you want to bill for the adjustments.

Calculate on CFE Register

This option is only available if the entered employer is configured as a Certified Employer And Limit testing is not on the Employer Register. This option should only be selected when recalculating taxes for a Certified Employer with employees working between multiple clients.

Select one of the options from the drop-down:

• No - This is the default option. When set to No, the process will continue using the normal process to recalculate employees based on the employer level register.
• Yes - When set to Yes, taxable limits will be recalculated on the Client Federal Entity Register between each client and not on the employer level as combined across clients.

Include SUTA/FUTA Successor Wages

Select from the following options:

• No - This is the default option. When set to No, the recalculation utility will only look to actual vouchers on the employee record to determine tax amounts. Successor wage tax amounts will not be recalculated. If you have processed any rate adjustments through payroll related to successor wages, these amounts may be reversed with the recalculation utility when successor wages are not included.
• Yes - When set to Yes, the recalculation utility will include the successor wage and tax amounts in the results of the voucher recalculation utility. If successor earnings were entered for FUTA, and you are adjusting FUTA rates, the state will be determined based on the current home work location for the employee in the recalculation process. For example, if an employee has FUTA successor earnings and works in NY which has a FUTA rate increase, those wages would be included in the rate adjustment. If that employee has a home location of FL, the wages would not be included.

Note:  When recalculating taxes on vouchers to include successor wages, you cannot adjust the wage limit to be less than the successor wage amount. The successor wages would need to be adjusted manually. If you try to adjust the wage limit to be less than the successor wage amount when recalculating taxes on vouchers to include successor wages, the following sample error will generate notifying you that the employee has successor wages in excess of the taxable wage limit.

Error: Employee T16129 in company 925 has Successor Earnings in excess of the taxable limit. Cannot adjust that amount.

6. Select Update existing vouchers if you do not want to create new adjustment vouchers.