An employee’s Social Security and/or Medicare tax deficiency can originate from an erroneous exemption from employment taxes (i.e. the employee’s FICA Status on the Job Data page is incorrect) and/or other reportable earnings are added to the employee’s taxable gross wages after the issuance of the final paycheck in a calendar year.
Currently, the biweekly amount to be recovered per pay period is manually calculated at a flat 3% of the employee’s gross earnings. The total tax deficiency amount is entered by OSC into the Goal Amount field and the amount to be recovered per pay period is entered into the Flat Amount field on the employee’s General Deduction Data page. When the Goal Amount is reached, the deduction is automatically stopped.
The calculation routine - “Percent of Total Gross” - will automatically calculate 3% of the employee’s gross earnings each pay period until the deficiency amount is recovered.