If you use QuickBooks for payroll, you should make sure you have the Additional Medicare Tax item set up properly for 2014, especially if you did not set it up or did not need it last year. Any employee making over $200,000 in compensation will be subject to this additional 0.9% payroll tax, just like in the prior year.
Enhancements have been made with the latest QuickBooks release (QuickBooks 2014 R6 or later) with an active payroll subscription automating the steps that add the Medicare Employee Additional Tax payroll item. This ensures that the payroll item is setup for each employee at the moment their paycheck is created. If you are using an older version, you will need to manually add this payroll item.
Tip: To see which version of QuickBooks you have, press F2 on your keyboard when you have your QuickBooks open. The QuickBooks version and release (R_) number will appear at the top of the pop-up window.
Our Small Business Services team can help if you have any questions.
