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Payroll taxes are not calculating correctly in EasyACCT

by Intuit EasyACCT 2023 Updated 6 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.

Make sure the latest year's tax tables are present and that rates and limits haven't changed:

  1. Go to Company Selection and select System.
  2. Select System Utilities.
  3. Go to Payroll/Sales Tax Tables.
  4. Select Federal Tax Tables.
  5. 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:

  1. Go to the Employee Information screen and make sure there are no extra withholding amounts or percentages, which will affect the calculation.
  2. Go to the Wage/Withholding tab to review if the setup is correct.
  3. For federal taxes, make sure the applicable box is selected on Gross Pay items.
  4. If a tax-exempt withholding item is set up, it should be selected to show the tax is exempt.
  5. For state, local and other state taxes, make sure the correct tax codes are selected.
  6. Go to the Earnings Records tab and make sure that YTD earnings don’t exceed any applicable tax limits.
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