How to setup additional medicare taxes


In 2013 the federal government added a new Medicare tax that takes effect once an employee makes over $200,000.00. ESC can accommodate this tax but you will need to complete these steps to create it:

  1. Go to Employees → Payroll Tax Items.
  2. Click Add New and select Medicare Additional from the drop-down list.
  3. Select the MCX Tax Formula and change the Vendor and Liability Account to match what you have entered on your other Medicare tax items.
  4. Click on the Items That Apply To This Tax tab and check each of your wage items. In the Deductions column, check any cafeteria deductions then click OK.


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