Third-Party Pay Calculation for Social Security and Medicare Withholding Tax

As a payroll service customer, when you enter an amount in the Gross Pay field on the Payment Entry window (Payroll System > Maintenance Programs > Work on Third Party Pay > Enter/Edit Third Party Pay), the amounts in the Withholding fields under the Social Security column and Medicare column are now automatically calculated.

You also have the option of manually editing the Social Security and Medicare withholding. The calculation is based on the amounts specified on the Year Federal Tax Information window (Payroll System > Maintenance Program > Tax Rate Maintenance > Federal Tax Table Maintenance).