There are always people that are listed on the PR297 as having social security/medicare in arrears. Most are tiny amounts and social security/medicare does self correct. It does cause problems at quarter/payroll year end when the 941’s are done and we have to pay for the arrearages before they are taken.
All of the taxes are set up on PR05 with the same priority of 1. If multiple deductions within a category have the same priority, the system processes them in numeric/alpha order. Medicare is TE04 and social security is TE05 so Federal and state taxes will come out first (TE01-TE03). Is it possible to change the priorities so that Social Security and Medicare comes out first and there shouldn’t be arrearages with anyone?
My question is How are others handling the priorities for tax deductions and do you have any recommendations?
We are version 10 S3, and have PR05 social sec & medicare deductions set to priority 1, federal a priority 2, states a priority 3. If you are currently using these priorities for other deductions, such as benefit and voluntary deductions, you may need to re-visit those deduction priorities also, to make sure the deductions you want to be withheld first will be. You will need to run PR115 to update the priority on the PR14 employee deductions and you may need to change the More tab for Priority from a 1 to a 2. I would suggest doing this in your TEST environment first. Before making the PR05 change/PR115 update, I would extract the deduction codes you are changing from the EMDEDMASTR table. Then, once you make the change, you can extract the data again to confirm it updated the records/fields you were expecting. In prior years, we did have some issues with the PR115 More tab, but I believe those have since been resolved.