[Mail_treas] City Tax and Medicare Pickup

[Marcia Wylie]

Good Afternoon Everyone,
As we begin a new calendar year we wanted to send a payroll item configuration that you may or may not be using.
When you have an employee who has Medicare Pickup and contributes to city tax there are two options available in Payroll Item Configuration, but they have different affects about how City Taxes are processed.

The First Option:  In the OPTIONS section of payroll item configuration, for the city tax the employee is having withheld,  you can select Medicare Pickup.
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If you select this option, the amount of Medicare Pickup will be added to the applicable gross of the city tax, BUT no city taxes are withheld and the employee would be responsible for paying those taxes when they file at the end of the calendar year.


The Second Option, RECOMMENDED OPTION:  In the EMPLOYER PAID AMOUNTS TO BE TAXED section of the city payroll item configuration, select 692 Medicare Tax and move it to the area TAX EMPLOYER PAID AMOUNT FOR THESE PAYROLL ITEMS.

You will also want to click the flag  TAX EMPLOYER AMOUNTS.

[cid:image006.png at 01DA5053.6A21D240] [cid:image005.png at 01DA5050.93371F80]

Using this option will add the Medicare Pickup amount to the city tax applicable gross AND will also withhold the city tax from the employee.

These options only affect Medicare Pickup employees.

If you have any questions, please send an email to helpfiscal at mveca.org<mailto:helpfiscal at mveca.org>

Thank you,
Marcia, Ashley and Brandy



Thank you,

Marcia Wylie
Fiscal Software Support
MVECA
888 Dayton Street, Suite 102
Yellow Springs, OH 45387
937-767-1468  ext. 3123
Email:  helpfiscal at mveca.org
[http://www.mveca.org/images/logo.gif]<http://www.mveca.org/>  [i] <https://www.linkedin.com/company-beta/3947840/>
Not-for-profit Technology Services for Education and Local Governments

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