In 2013 the federal government added a new Medicare tax that takes effect once an employee makes over $200,000.00. ESC can accommodate this tax but you will need to complete these steps to create it:
- Go to Employees → Payroll Tax Items.
- Click Add New and select Medicare Additional from the drop-down list.
- Select the MCX Tax Formula and change the Vendor and Liability Account to match what you have entered on your other Medicare tax items.
- Click on the Items That Apply To This Tax tab and check each of your wage items. In the Deductions column, check any cafeteria deductions then click OK.