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How to use the recalculate feature in EasyACCT payroll processing

SOLVEDby IntuitEasyACCTUpdated October 05, 2021

Recording payroll checks after the fact (ATF), might result in incorrect amounts entered for Employee FICA/Medicare or other withholding. This article will help explain how to use the recalculate feature.

An incorrect entry for Employee FICA/Medicare also causes matching to be incorrect. For example:

Salary = $1000.00
FICA = $60.00
Medicare = $13.00
FWT = $100.00
Net Pay = $827.00

  • Total FICA (Employee WH + Employer match) should be 12.4% of the check or $124.00.
  • Employer FICA is calculated by subtracting Employee FICA from total FICA.
    • Employer FICA would be $124.00 - 60.00 = $64.00.
    • Employee FICA and Employer FICA don't match.
    • The employer part is absorbing the difference.
  • Total Medicare (Employee WH + Employer match) should be 2.9% of the check or $29.00.
  • Employer Medicare is calculated by subtracting Employee Medicare from total Medicare.
    • Total Medicare would be $29.00 - 13.00 = $16.00.
    • Employee Medicare and employer Medicare don't match.
    • The employer part is absorbing the difference.

To correct this, the check would need to be recalculated:

When the Recalculate button is selected, a prompt comes up informing you of which taxes are incorrect and what the correct numbers should be.

Using the example above, the prompt would look like this:

Current  |  Recalculated
Employee
FICA:            60.00 | 62.00
Medicare:    13.00 | 14.50
FWT:          100.00 | 96.50
Employer
FICA:           64.00 | 62.00
Medicare:    16.00 | 14.50

  • Employee FICA/Medicare now matches Employer FICA/Medicare.
    • Employee FICA is increased by $2.00 / Employer FICA is decreased by $2.00.
    • Employee Medicare is increased by $1.50 / Employer Medicare is decreased by $1.50.
    • Employee Federal Withholding is decreased by $3.50, used to offset the increased $2.00 + $1.50.
  • The Net Pay remains the same.
  • The recalculate button recalculates taxes ignoring any Payroll Entry Options.
  • To recalculate the check based on the Payroll Entry Options, press Enter through all the fields of the check.
  • If there is no difference between current and recalculated amounts, the Recalculate prompt doesn't come up.
  • The Recalculate feature can be used for all existing checks.

There are special conditions that might prevent employee/employer amounts from adjusting this way when there are insufficient amounts of federal, state, or local withholding.

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