I am developing an accounting solution on spec and I have a question about how the payroll tax for Medicare is computed. Is is a straight percentage, or is it a percentage with a cap on the amount. I ask only because, in analyzing payroll data from another database, I see that, here in NY, the Medicare deduction never seems to go higher than 60 cents for any employee (although it is lower on smaller paychecks).
In my solution, the user sets the tax rates and then those percentages are use to compute the tax for each payroll check. If the Medicare deduction is capped at 60 cents, it will require rounding down to that amount (assuming the cap kicks in at a certain dollar amount).
Allegro Data Solutions
(Please post your response to this forum, rather than contacting me directly.)