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Former Member

Employee Medicare Tax withholding is not calculating correctly on negative supplemental wages

Hi Experts,

We have an issue where Employee Medicare Tax withholding is incorrectly calculating on negative supplemental wages. When processing wage type as negative for an employee whose YTD Medicare wages is over 200,000, tax is not calculating correctly. Medicare employee withholding is 1.45% up to 200,000 and 2.35% on wages over 200,000. When we entered negative supplemental wages for an employee with over 200,000 YTD it calculates negative Medicare tax at 1.45% on the negative wages and on the positive wages calculates correctly at 2.35%. The negative wages should have been looked at the YTD before determining whether taxes are at 1.45 or 2.35.

Any comment/suggestion is appreciated.

Thanks,

Santosh

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1 Answer

  • Oct 19, 2015 at 05:31 AM

    Hi Santosh,

    Please check if switch "ADTMD" is set to "ON" value for country grouping 10 in table V_T5F99K2.

    Thanks,

    Ameet

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    • Former Member

      Hi Ameet,

      I set the switch " ADTMD" to "ON" for country grouping 10 in table V_T5F99K2, still the issue is not resolved.


      Please suggest if I need to check some other tables.

      Thanks,

      Santosh