Intuit HelpIntuit
Payroll taxes are not calculating correctly in EasyACCT
by Intuit• Updated 2 months ago
If federal, state, local or employer payroll taxes are calculating incorrectly, review the solutions below:
EasyACCT annualizes the employee's pay regardless of the selected pay period.
- When comparing the tax calculation in EasyACCT to a tax publication, compare the annualized tables only (these are used by most software companies).
- For federal tax calculations, refer to IRS Pub. 15 and IRS Pub. 15-T
For after-the-fact payroll, EasyACCT automatically adjusts FICA and Medicare to the correct amount if the employee is over, or under-withheld, and this adjustment is taken out of federal withholding.
- The employer portion is also adjusted so total FICA and Medicare are correct for reporting on Form 941.
- For more information, refer to Using the Recalculate Button in Payroll Processing
Make sure the latest year's tax tables are present and that rates and limits haven't changed:
- Go to Company Selection and select System.
- Select System Utilities.
- Go to Payroll/Sales Tax Tables.
- Select Federal Tax Tables.
- Repeat for state, local and other state taxes.
The employee might not be setup correctly, or you've set up tax-exempt withholding items that reduce the tax.
To check the employee setup:
- Go to the Employee Information screen and make sure there are no extra withholding amounts or percentages, which will affect the calculation.
- Go to the Wage/Withholding tab to review if the setup is correct.
- For federal taxes, make sure the applicable box is selected on Gross Pay items.
- If a tax-exempt withholding item is set up, it should be selected to show the tax is exempt.
- For state, local and other state taxes, make sure the correct tax codes are selected.
- Go to the Earnings Records tab and make sure that YTD earnings don’t exceed any applicable tax limits.
Sign in now for personalized help
Ask questions, get answers, and join our large community of Intuit Accountants users.
More like this
- How to set up withholding for employer matching in EasyACCTby Intuit•1•Updated 1 month ago
- Payroll forms supported in EasyACCT and the Information Return Systemby Intuit•31•Updated November 17, 2023
- E-filing 1099s and W-2s through EasyACCT's Information Return Systemby Intuit•5•Updated 1 month ago
- Filing Forms 8655 and 8633 to e-file Forms 940 and 941 in EasyACCTby Intuit•1•Updated over 1 year ago
- How to contact EasyACCT for helpby Intuit•10•Updated 1 month ago