Submitted by 2696364 on
Symptom

Running W2’s in Aatrix and getting warning message:
Box 3 (social security wages) + Box 7 (social security tips) x 6.2% must be within $1 of Box 4 (social security withheld).
 

Cause

The amount of Social Security withheld (Box 4) is not 6.2% of Social Security Subject Earnings (Box 3+ Box 7).

Resolution

Normally this is a problem with data entry or adjustments. In most cases the amount in Box 4 should be 6.2% of the amount in Box 3. Box 7 is not normally used by MIP customers unless they have employees that report tips.
 
If your organization participated in the 2020 Executive Order that deferred Social Security tax payments for employees, then this would not be considered to be a problem that needs to be corrected. Social Security Tax was deferred (not withheld) from the employees’ paycheck, but subject earnings were still recorded. As a result, the amount of tax withheld is less than 6.2% of subject earnings. If this is the case, then you can click “Continue without correcting” and move forward with the W2 process. In Tax year 2021 you are going to run into the same issue in that the deferred SS tax must be collected. As a result, social security tax amounts will be greater than 6.2% of subject earnings.
 
If your organization did not participate in this tax deferral program you should not click “Continue without Correcting”. Click “Go back and Correct” instead.
 
Ideally you should exit out of Aatrix and resolve the issue in MIP. This issue usually occurs because an adjustment or payroll check modification was incorrectly made to Social Security Taxes. As a result, the amount of Social Security Tax withheld is not 6.2% of subject earnings.
 
To troubleshoot this go Reports>Payroll>History>Taxes. Select the default report <Tax History by Tax Type Monthly>
 
Change the reporting date to be the Tax year in question.
 
On the filter tab Filter on Tax Type = SS and the Employee ID that was getting the error.
 

 
Look at the totals on the bottom and calculate if the PTD employee Tax is 6.2% of the PTD Employee Subject Earnings.
 
If it is not look for Payroll that are adjustments to see if Subject Earnings and Tax were both properly adjusted.
 
Also look for any payroll where the PTD employee Tax is not 6.2% of PTD employee Subject Earnings.
 
After you have found the problem the best way to fix it is to go to Activities>Payroll>Setup/Adjust Employee Balances. Go to the Taxes Tab and Adjust Social Security amounts to make them correct. This might involve either correcting the amount of Tax witheld or the Subject Earnings.
 
After this is done go back into Aatrix and pull the information from MIP and process your W2.
 
Question- Is it ok to just make the change to the SS values in Aatrix?
 
Answer- Yes but it is not recommended. If you exit out of Aatrix without saving you may lose your adjustments. Also if you try and run a report in MIP to support the Aatrix values they will not match. If you do the adjustment in Aatrix it is recommended that you make the appropriate adjustment in MIP afterward.
 
 

Article Type
Product Info
Product Line
MIP Fund Accounting
Product Module/Feature
Payroll
Product Version
2020.3
Ranking
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