Note: This issue is not related to the Sage 100 Payroll 2.20.3 update just released, and can occur with any Payroll version
A new issue was just identified. Social Security and Medicare Wages and Taxes are incorrect when combining FFCRA earnings with earnings types other than regular (when not using Tax Rule -800039).
A check with Covid Earnings codes, and Earnings Code(s) not using Tax Rule -800039 Regular Wages and a Cafeteria Type Deduction will have this issue. This will cause Employee and Employer Social Security and Medicare Wages, Capped Wages, and Tax to be understated. The 941 amounts will be incorrect if data is not corrected unless you manually edit in the Aatrix form.
Preventing under-withholding of Social Security and Medicare Taxes can be accomplished by putting the Covid Earnings on a separate check entry number. Put the Cafeteria deduction on either check entry, or split as needed between the check entries.
