To process a FICA batch where the Employees FICA and Medicare amounts are refunded back to them, you’ll create a batch separate from standard payroll and apply a slightly different logic detailed below.
FICA Batch Creation
First, you’ll mark the FICA batch by checking both the FICA Batch and No Authorization options. You’ll also set the program, check and period dates as usual. We also suggest adding a note to the batch as FICA to avoid confusion.
If you’re making use of FICA batches, typically every program requires its own batch as importing and payroll are done by the program.
Entering FICA Time
Adding the time to the FICA batch can be done both manually as well as imported. For more information regarding the import process, review the Import Process Page. Key differences when working with a FICA batch is to first make sure it’s marked as override, and the hours are set to negative as shown below. For example, if you are refunding $500.00, set the hour to -1.00 and the pay rate to $500.00.
FICA Calculation
At this point you can calculate wages as normal, but you will notice that the Medicare and FICA entries on the Payroll Deductions Tab are negative. Employee FICA and Medicare amounts are added together and become the net pay, which is the refund for the employee.
At this point you can process the payroll and lock the batch as usual.
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