Something doesn’t seem to be right in the tax column? Do you feel that the Social Security Tax Is Wrong? If yes, then you are at the right place. As, in this article we will talk about reasons related to employee and employer’s Social Security Tax not matching. As, we know that social security tax is that tax which is paid both by the company and its workers.
Though, the calculation may be different from each other. For more details regarding this, please feel free to call our Accounting Errors Sage tech support staff. Our Sage tech help-desk is open round the clock, and will give you all the details regarding anything related to Sage including social security taxes.
A few years back, employee’s social security bracket was changed to a certain amount. And, your Sage accounting solution has been calculating the appropriate amount all year, it is just that all of us have to be aware of the new brackets. However, the Tax Liability Report may be still calculating the similar amount for both employee and employer till the last service release.
As per the latest, correct standards, the deduction percentage has to be different from employees and employers. Though, some people said that probably their Quarterly tax reports doesn’t seem to be appropriate. Some users also felt that they might have to pay extra amounts as interest and even some penalties on the not-deposited values. Therefore, we need to figure out the way to change the number.
We have to realize that the Social Security tax bracket has changed already. The company has to pay a certain amount of the Gross as their Social Security Tax, whereas, when it comes to the employees, the percentage has dropped a bit. It is just that the calculation has to be perfect on the tax liability reports.
How to fix this?
Firstly, you have to be very careful of the latest tax brackets. Of you are aware of the actual tax brackets, then only you will be able to make the changes if the brackets are not correct.
You would have to manually adjust all the tax reports in the latest tax reporting to the numbers which they may be able to get the perfect tax reports for you. If you basically want to rectify the check information, then you may have to install the right limits, and reprocess the entire thing again. However, you may have to re-allocate the taxes so the new as well as the old reports are the same net amount.