OSPS E-News ~ FICA MAX AND YEAR-END REVERSALS - ALERT

[osps-news at listsmart.osl.state.or.us]

FICA MAX AND YEAR-END REVERSALS - ALERT: 

Please be very careful in November when reversing checks or stopping ACHs.
The maximum dollar amount against which FICA is taxed is $87, 900. this
year.

If your employee reached this maximum THIS MONTH, and  their check or ACH
needs to be reversed and re-written, there will be additional
hand-processing necessary when requesting a manual check either in-house or
through OSPS.

If your employee's salary has reached or exceeded the $87,900 limit, do
this: 

1. From the check to be reversed, note the "OASDI" amount.  If you're
looking at a register instead of a check stub, note the "FICA" amount.

2. When you pull your P370, compare the "FICA" amount on the screen with the
amount you noted above.  If they're the same, no further hand-processing is
necessary.

3. If the P370 FICA is different than the amount you noted, figure out the
difference between the two amounts and subtract the difference from the net
before you request a check.

This process is necessary because OSPA reads the new calc before it reads to
reverse the old calc, resulting in a net pay negative for November.  This
would normally be okay, but since it's the last pay period of the year it
needs special handling to avoid a net pay negative situation for year-end. 

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