federal tax refunds

[bsbrown]

When federal tax refunds are received for overpayment, there's no designated breakdown as to which of the three taxes make up the total. What is the best way to handle in trying to apply to accounts.

[NeilZ]

When federal tax refunds are received for overpayment, there's no designated breakdown as to which of the three taxes make up the total. What is the best way to handle in trying to apply to accounts.

I take it you don't have any idea what was overpaid? Its fairly easy to figure out what is the amount for Social Security & Medicare, those rates are static. Easily done by running a report to see what the income was for the period, and multiplying by the rates.

If you find that the SS & Medicare were overpaid, then you divide the amount in half, as half is the employer's contribution. The other half you'll have to figure out between the employees based on the normal deductions.

However, usually these are not what is at fault, I find that its usually the FITW that is the issue. In which case you need to see who had the wrong withholding for the period.

[bsbrown]

thanks Neil. i'll see what I can come up with using your reply.