QuickBooks Pro 2012 Payroll update download

The tax table:

• automatically adjusts many flat-rate taxes

Non-retroactive tax rate changes are not adjusted.
It also determines the rates and wage limits for federal, state, and rate defined local taxes. Examples:

• Social Security
• Medicare
  For Additional Medicare Tax, see User Guide for QuickBooks.
  
• Federal Unemployment (FUTA)
• State Disability (except for HI and NY)

QuickBooks stops collecting tax amounts when employee reaches the wage base limit for that tax item.Additional Medicare starts calculating on paycheck, only after the employee has reached $200, 000.00 in wages for the current year.Employee who had reached wage base limit, will show amount of $0.00 on paycheck for that tax item.Example: FUTA wage base limit is 7, 000/year. Employee wages in excess of 7, 000 will show S0.00 amount for FUTA on paycheck.Federal and State Income Tax (FIT and SIT) calculations:Having a 0 amount or a different amount than usual on a paycheck, does not always indicate erroneous calculation. More often than not, it is because QuickBooks is just working as designed. Below are some example scenarios for FIT and SIT:
Federal and State Income Tax (FIT and SIT) amount calculations are determined by the following:

• agency's wage and tax calculation table which is updated by the Tax Table
• employee's filing status, number of allowances or extra witholding amount in the employee setup
• pre tax deduction items included on the paycheck
  
• changes in pay frequency (creating extra paycheck outside of normal pay schedule)
• creating paycheck with wages that has lesser or larger amount than what employee normally gets in a pay period

Additional Medicare starts calculating on paycheck, only after the employee has reached $200, 000.00 in wages for the current year. You need to ensure that your employees are setup for this item in the employee profile for Medicare Employee Addl Tax to calculate correctly once the employee reached the Medicare limit.