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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">Good Afternoon Everyone,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">As we begin a new calendar year we wanted to send a payroll item configuration that you may or may not be using.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS""><img width="407" height="159" style="width:4.2416in;height:1.6583in" id="Picture_x0020_3" src="cid:image003.png@01DA504F.A350F040"></span><span style="font-size:12.0pt;font-family:"Comic Sans MS""><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">The Second Option,
<b>RECOMMENDED OPTION</b>: 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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Comic Sans MS""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Comic Sans MS"">You will also want to click the flag TAX EMPLOYER AMOUNTS.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Comic Sans MS""><o:p> </o:p></span></p>
<p class="MsoNormal"><img width="356" height="150" style="width:3.7083in;height:1.5666in" id="Picture_x0020_6" src="cid:image006.png@01DA5053.6A21D240">
<span style="font-size:12.0pt;font-family:"Comic Sans MS""><img width="507" height="127" style="width:5.2833in;height:1.325in" id="Picture_x0020_5" src="cid:image005.png@01DA5050.93371F80"></span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">These options only affect Medicare Pickup employees.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">If you have any questions, please send an email to
<a href="mailto:helpfiscal@mveca.org">helpfiscal@mveca.org</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">Thank you,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Comic Sans MS"">Marcia, Ashley and Brandy<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Calisto MT",serif;color:#2F5496"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Calisto MT",serif;color:#2F5496"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Calisto MT",serif;color:#2F5496"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Calisto MT",serif;color:#2F5496">Thank you,<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Calisto MT",serif;color:#2F5496"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:20.0pt;font-family:"Monotype Corsiva";color:#2F5496">Marcia Wylie<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><i><span style="font-size:12.0pt;font-family:"Calisto MT",serif;color:#2F5496">Fiscal Software Support<o:p></o:p></span></i></b></p>
<p class="MsoNormal"><b><span style="font-family:"Calisto MT",serif;color:#2F5496">MVECA<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-family:"Calisto MT",serif;color:#2F5496">888 Dayton Street, Suite 102<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-family:"Calisto MT",serif;color:#2F5496">Yellow Springs, OH 45387<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-family:"Calisto MT",serif;color:#2F5496">937-767-1468 ext. 3123<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-family:"Calisto MT",serif;color:#2F5496">Email: helpfiscal@mveca.org<o:p></o:p></span></b></p>
<p class="MsoNormal"><a href="http://www.mveca.org/"><span style="color:#1F497D;text-decoration:none"><img border="0" width="174" height="64" style="width:1.8166in;height:.6666in" id="Picture_x0020_1" src="cid:image001.jpg@01DA504E.C5C0F7C0" alt="http://www.mveca.org/images/logo.gif"></span></a><span style="color:#1F497D">
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<p class="MsoNormal"><i><span style="color:#1F497D">Not-for-profit Technology Services for Education and Local Governments<o:p></o:p></span></i></p>
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