How Do You Adjust Medicare Over Limit Balances? (Doc ID 1548473.1)

Last updated on JANUARY 09, 2021

Applies to:

Symptoms

When doing a Balance Adjustment to Medicare Taxable, the balance adjustment is not adjusting Medicare Over Limit first

Steps to Reproduse:
The issue can be reproduced at will with the following steps:

1. Adjust Medicare taxable wages and taxes on a terminated employee who has in excess of 200,000 with the additional tax withheld.
2. The balance adjustment would reduce the taxable wages to below the 200,000 threshold
3, The Medicare Over Limit Balance is not being adjusted
4. The 941 report would also be incorrect
  Taxable wages & tips subject to Additional Medicare Tax withholding
5. The Unacceptable Tax Balance reports a discrepancy in the Medicare calculated and Medicare balance

Changes

Cause

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