*** 2024 FICA Maximum has changed from 2023 ***
Before running a payroll for a new calendar year (2024), the MTD, QTD and YTD (from 2023) on the employees’ records must be cleared out. Running the Clear YTD, QTD, MTD Emp/Recurring program does this. Go to:
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Payroll (Module 1)
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System Management Functions (Task 32)
- Clear YTD, QTD, MTD Emp/Recurring (Sub-task 3)
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System Management Functions (Task 32)
Clearing these fields will not interfere with the running of W-2s for 2023 since the information for the W-2s come from the Payroll History. Note: If these fields are not cleared, the current year’s wages (2024 that print on the check stub will also include the wages from the prior year (2023).
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Also note that the FICA wage Maximum for 2024 HAS changed:
- 2024 $168,600.00 [SSA.gov as of 3/21/2024]
- 2023 $160,200.00
- See below the change needed in field 5. Unless you have an employee who is going to exceed the old cap of $160,200.00 before the 2023 W2’s are printed, then this change can be made after your W2’s are printed.
- The FICA employee tax rate for social security is still 6.20%, as it was in 2023.
- The FICA employer tax rate for social security is still 6.20%, as it was in 2023.
FICA fields are found in:
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Payroll (Module 1)
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System Management Functions (Task 32)
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Update P/R Execution Parameters (Sub-task 4)
- Field 5: FICA Maximum: 168,600.00
- Field 6: FICA employee %: 6.20
- Field 7: FICA employer %: 6.20
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Update P/R Execution Parameters (Sub-task 4)
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System Management Functions (Task 32)
ADDITIONAL NOTE: Field 5: FICA Maximum needs to be the 2023 amount of $160,200.00 when the 2023 W2’s are printed and when the payroll reports are printed for the 2023 4th quarter.
Verify the 2024 FUTA % & maximum: (Both unchanged from 2023)
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Payroll (Module 1)
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System Management Functions (Task 32)
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Update P/R Execution Parameters (Sub-task 4)
- Field 20 Fed unemp max: 7,000.00
- Field 21 Fed unemp pct: 0.60 (which is net of 6% - 5.4% max credit. You must verify this is applicable to your particular state & situation)
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Update P/R Execution Parameters (Sub-task 4)
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System Management Functions (Task 32)
STATE:
- If your state has an unemployment maximum and an unemployment % you may need to update field 22 & 23. Verify with your state website or your accountant.