We have one employee that has medicare taxable wages that go over the 200,000.00 threshold. For the last couple of years we have had no issues. We ran a test 941 right before we applied year end patches (upto 604 92) and the employee's 941 in the 4th quarter generated fine, no errors. We generated a test 941 after patches were applied and it now gives an error in the 941 that the employee is out of balance. We have to manual adjustments on some employee's an are unable to process those in the 941 fourth quarter or the W2's because of this error. The employee's payroll results are all correct and withholding and taxable amounts are ok. The 941 has the correct amounts for this employee as well. It appears the 941 is giving a message that the employee is out of balance the amount of the additional tax withheld X2. So additional tax withheld is 327.47 and it says the employee is out of balance by 654.94 which is 327.47 * 2. I am not finding a note that fixes this yet. Has anyone else seen this?
Thanks,
Gina Gillespie
Update: I applied notes for Q4/2015 and Year End Phase II and III and this error went away however it still says my manual entries are ignored. I thought they were being ignored because of the out of balance person but that must not be why. Anyone know what might cause all the manual adjustments to be ignored in the 941 and W2 run? It doesn't give any description just says they are ignored with no indication of why.