How_do_I_set_up_the_employer_s_tax_pay_code_for_Medicare_

How do I set up the employer's tax pay code for Medicare?

 

Before you get started


Setting up the employer's tax pay code for Medicare

1. Open Connect Payroll > Organization > Pay Codes.

2. Look up the Medicare pay code.

3. Click to select the Employer tab > Employer subtab.

4. Find the section titled Allow Calculations With These Check Types.

5. Click to select the checkbox titled Third Party.

6. Click to select the Used for Calculation subtab.

7. Click the link titled Select Pay Codes.

8. Move the pay code for Third Party Sick Pay to the Selected Pay Codes list.

9. Click OK.

The pay code for Third Party Sick Pay displays in the pay codes listed on the Used for Calculation subtab. The Medicare pay code will use the pay code for Third Party Sick to calculate the employer’s Medicare tax.

 

 

Copyright © 2025 Caselle, Incorporated. All rights reserved.

    • Related Articles

    • How do I set up the over 40 hours, straight pay code? (AL) (2024.02)

      Set up a pay code to calculate straight pay for overtime pay received by a full-time hourly wage paid employee. Adding the Over 40hrs, Straight pay code 1. Open Connect Payroll > Organization > Pay Codes. 2. Click New (CTRL+N). 3. Set up the Pay Code ...
    • How do I set up the over 40 hours, overtime pay code? (AL) (2024.02)

      Set up a pay code for overtime pay received by a full-time hourly wage paid employee for hours worked above 40 in any given week. These employees are excluded from gross income and they are exempt from Alabama state income tax. Adding the Over 40hrs, ...
    • How do I set up the Pay Code Transaction Report - ACA Year End? (2024.05)

      The Pay Code Transaction Report - ACA Year End prints the employee information for verifying employee health insurance. This report groups full time and part time employees separately to verify if the employee classification as a full time or part ...
    • How do I add the third party sick pay code to an employee?

      Before you get started Add a third party sick pay code. See the help topic titled How do I set up third party sick pay codes? Change the employer's tax pay code for Social Security to calculate on the third party pay code. See the help topic titled ...
    • What is third party sick pay?

      Sick pay is any amount paid to an employee for any period during which the employee is temporarily absent from work because of injury, sickness, or disability. The third party payer, usually an insurance company, is usually responsible for ...