UNCOLLECTED TAXES ON TIPS

Forum|Forum|1 year ago
February 5, 2025
3 replies
13 views

First time with this...tipped employee did not have enough in base wages to pay part of the FICA tax on tips. How do I set this up in EasyAcct to attempt collection from future wages?

EasyACCT

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CardinalBBFanAuthor

Level 3

Anybody? Just want to make sure I did this correctly.

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Dianna

Level 4

I don't think you have it set up correctly, this shouldn't be an issue. FICA is calculated on what the total earnings were and goes from there. The code should be RTP for Tip's received and BTP for Base Pay and Overtime. Allocated Tips should have 8 as the code in the box. I'm not sure this helped but thought I'd reach out.

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CardinalBBFanAuthor

Level 3

Thank you, but all my codes on company and employee set up are correct. I'm looking for information on exactly how to handle the uncollected amount on the same check it occurred and how to collect it on the next (or next or next) check. I'd like to know the steps to take from the time you get the error report that says they were uncollected before you even print and save your checks. Can you help with that?

qbteachmt

Level 15

Uncollected, on the same check, is an Employee Advance, not taxable. It's a loan to the employee. It's an addition that offsets the shortfall.

Collecting the repayment from the employee later is a post tax deduction and reduces takehome, the same as a wage garnishment.

Don't yell at us; we're volunteers

qbteachmt

Level 15

I think you're asking about Employee Advance or Loan repayment (basically, wage garnishment, but inhouse), because this will have been paid by the employer and repaid from post-tax funds. I don't use EasyACCT, but maybe that helps.

Don't yell at us; we're volunteers

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CardinalBBFanAuthor

Level 3

Yes. All my codes are set up correctly (I verified this with EasyAcct), but I'm not sure what the system does automatically to collect the uncollected fica or medi and what I have to do to make sure it's collected. I can't find ANYTHING in Help that tells you step by step how to handle the uncollected amounts. Just spent 45 minutes on the phone with support and the person was unable to help me.

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