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- If the Medicare is fully board paid (referred to as Medicare Pickup), adjustments will need to be created. (Board will need to pay for both Employee and Employer portion of Medicare.)
- Go to Core>Adjustments.
- Click Create.
- Enter the Employee, Payroll Item 001, Type Life Insurance, a Transaction Date, Enter the Amount of the Life Insurance, and a Description for future reference.
- Enter the Employee, Payroll Item 692, Type of Board's Pickup Amount of Payroll Item, a Transaction Date, Enter the Amount of the board pickup, and a Description for future reference.
- In order for Quarter report, 941 QTD Employer's Medicare Contribution to balance, add an adjustment using 'Board's Amount of Payroll item' for this amount.
- Click Save.
Example-
$100.00/ 98.55% = $101.47 (life insurance) x .029 (.0145 x 2) = $2.94 board payment
$1.47 Is the amount of the Board Pickup Amount of the Payroll Item. This will update both Medicare Pickup for $1.47 and Medicare for $1.47 on the Employee's W2.
$1.47 Is the amount of Board's Amount of payroll item'. This will update the 941 Quarter report 'QTD Employer's Medicare Contribution.'
Adjustment records needs to be created:
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