USPS-R 6.4.1 Release Notes

Summary

This is a hotfix release of USPS-R that patches two high priority federal tax related issues.

Important highlights from this release

• If an employee had both medicare pickup and their yearly medicare applicable gross exceeded $200,000 the software was incorrectly adding the additional .9% medicare withholding to a portion of these earnings in excess of $200,000.

  • Please note both of the above conditions would have to be true for an employee to be affected by this issue.

  • The W2 report would detected and flagged this if it occurred. 

  • If you believe you have an employee that could have been affected, but are unsure ITC staff can open tickets with the SSDT and we can assist in determining if they were impacted.

• The federal withholding allowance was not correct for 2020 prior to this release. This amount was updated in the software based on a draft version of the IRS regulations, but this amount was changed prior to the final version of the regulations being released. A corresponding update was not made in the software until this release. Any payrolls processed after this release is installed will be correct. 

  • The federal withholding allowance is used in conjunction with an employee's claimed exemptions as part of the federal taxable gross calculation.

  • Since this amount was too low for 2020 prior to this release any 2020 payrolls processed before this release is installed would have resulted in a small federal over-withholding for 2020. 

All updates for this release