What is fica and futa

what is fica and futa

2014 FICA & FUTA LIMIT & PERCENTAGE RATES

Before running a payroll for a new calendar year (2014), the MTD, QTD and YTD (from 2013) on the employees’ records must be cleared out.   Running the Clear YTD, QTD, MTD Emp /Recurring­ program does this.   Go to:

    Payroll (Module 1)
      System Management Functions (Task 32)
        Clear YTD, QTD, MTD Emp /Recurring (Sub-task 3)

Clearing these fields will not interfere with the running of W-2s for 2013, since the information for the W-2s come from the Payroll History. Note:   If these fields are not cleared, the current year’s wages (2014) that print on the check stub will also include the wages from the prior year (2013).

    Also note that the FICA Maximum for 2014 has changed:
      2014 $117,000.00 2013 $113,700.00     See below the change needed in field 5.   Unless you have an employee who is going to exceed the $117,000.00 before the 2013 W2’s are printed, then this change can be made after your W2’s are printed.
    The FICA employee tax rate for social security is still 6.2% as it was

    in 2013.     The FICA employer tax rate for social security stayed the same as 2013 at 6.2%.

FICA fields are found in:

    Payroll (Module 1)
      System Management Functions (Task 32)
        Update P/R Execution Parameters (Sub-task 4)
          Field 5: FICA Maximum: 117,000.00 Field 6: FICA employee %:   6.20 Field 7: FICA employer %:   6.20

ADDITIONAL NOTE.   Field 5: FICA Maximum needs to be the 2013 amount of $113,700.00 when the 2013 W2’s are printed and when the payroll reports are printed for the 2013 4 th quarter.

Verify the 2014 FUTA % & maximum:

    Payroll (Module 1)
      System Management Functions (Task 32)
        Update P/R Execution Parameters (Sub-task 4)
          Field 20 Fed unemp max: 7000.00 Field 21 Fed unemp pct: 0.60

STATE:

    If your state has an unemployment maximum and an unemployment % you may need to update field 22 & 23.   Verify with your state website or your accountant.

Source: support.mvsoftware.com

Category: Insurance

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