CAUTION! Problem with tax liability report

Posted by Diane Koers on January 17, 2007, 1:04 pm

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If you are using Peachtree 2006 or 2007 and are manually updating your
payroll taxes, be cautious with the latest SR updates. The tax calculator is
changed to support the new "print & sign" forms and if you use the old
formula method, you get wrong liability amounts on the Tax Liability report
for Futa, FICA and Medicare. To check this, run the Tax Liability report
but also check the "Tax Withheld" box and compare it to the liability
amounts.

If you see the wrong amount, you need to change your formulas. The new
formulas are:

FUTA:
LIMIT=7000.00;

PERCENT=0.8;

TAXABLE_GROSS = YTD_LIMIT (ADJUSTED_GROSS,LIMIT);

ANSWER = -TAXABLE_GROSS * PERCENT%

FICA (EE & ER):
LIMIT=97500.00;

PERCENT=6.2;

TAXABLE_GROSS=YTD_LIMIT(ADJUSTED_GROSS,LIMIT);

ANSWER=-TAXABLE_GROSS * PERCENT%

MEDICARE:
PERCENT=1.45;

TAXABLE_GROSS=ADJUSTED_GROSS;

ANSWER = -TAXABLE_GROSS * PERCENT%

--
Diane Koers
www.thepeachtreelady.com
Co-author Peachtree for Dummies

Posted by RCW on January 18, 2007, 9:14 am

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Thanks Diane.

Richard