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