how2pr07.htm

How to move "Additional witholding" from FITTAX to FICATAX

Why this might be necessary:

You accidentally ran a payroll for an employee and the employee's "take fica" setting was set to "N"

Procedure:

1. Set the "take fica" setting to Y so in the future, the system will deduct fica from his/her earnings.
2. Manually calculate what the fica tax should have been.
3. In the ADDITIONAL WITHHOLDING box, type the amount to withhold that was missed. This will temporarily withhold the extra amount in the "federal income tax" (FITTAX) category.
4. Start the payroll module.Make sure the payroll workspace has no entries in it.
5. Issue a separate payroll to the employee who had the FICA tax problem, but key 0 hours for him/her. Then perform the trial process, and the payroll finish. Because there are zero hours, the system will generate a payroll with no earnings. You'll use this zero record to make the changes. NOTE: When you type the date to be on the checks, be sure to use a date that will put this entry into the proper quarter.
6. Exit Club Office.
7. Start the ADMINISTRATIVE EDITOR (admedit.exe - this is the purple lightning bolt program)
8. Open the EMP database, then select the PRHISTORY table. Scroll down the table until you locate the "zero payroll" you created for this employee. The entry to look for is the one that has zero dollars for all the fields that normally have values, such as the company wage, fitwage, etc and of course, the employee ID number in the EMPID column..
9. In the column called FICATAX, type the + adjustment that needs to be made for the employee. This will add the amount to the FICATAX total.
10. In the column called FITTAX, type a negative adjustment to take the money out of the FITTAX total, which is where it is temporarily. This should be exactly the same amount as what you typed into the FICATAX column, only negative.
11. Exit the administrative editor.
12. Start Club Office, select UTILITIES in the menu, then WIZARDS, and then PAYROLL SETUP.
13. Click FILE - Update CumEarn file from detail. This will recalculate all the totals for each quarter based on the detail. The adjustments you made will move the money from the FITTAX to the FICATAX totallers. When done, exit the wizard. You're done and the employee's earnings are correct.

Important Notes:

• Be sure to discuss the matter with the employee first. Tell him/her that on one (or more) paychecks the proper amount if FICA tax was not withheld from their paycheck, and that neither of you have an option to ignore the problem. You may have to work out a plan to make up the difference over one or more payroll periods.

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