Calculate FICA

Select this checkbox in the Salary and Fringe Calculation page to calculate employer-paid FICA (Social Security) and Medicare taxes for pay rates that are subject to these benefits.

• The projected employer costs are calculated based on budgeted salary and benefit amounts.
• In calculating FICA/Medicare benefits, the system uses the Employer Percent and Employer Maximum fields in Personnel Budgeting's FICA table.

You may repeat this process as many times as needed. Each time you run the calculations, the new amounts replace any existing ones.

Caution

You must run the Calculate Salary and Calculate Benefits options for all rate records before using the Calculate FICA option.

Menu Path:  Personnel Budgeting > Entry & Processing > Personnel Budgeting > Salary and Fringe Calculation. For the general procedure to follow, refer to Salary and Fringe Calculation.

Calculating FICA and Medicare Increases

The FICA flag in Personnel Budgeting's Pay Code table determines whether a rate or special pay is included in the calculation of FICA/Medicare benefits:

F - Subject to FICA/Medicare - Allows the system to calculate both FICA and Medicare benefits.

M - Medicare Only - Limits the budget calculations to Medicare benefits.

P - From Primary Rate - Calculates FICA/Medicare or Medicare only, depending on whether the Subject to FICA field in the employee's primary rate pay code is F or M.

N - Not Subject - Neither FICA nor Medicare applies.

The Employer Percent and Employer Maximum fields from the FICA table are used in calculating the budgeted benefit. The maximum amount allowed annually is considered individually for each FICA record.
In addition to calculating FICA/Medicare on budgeted salaries, the system includes benefit projections in its calculations. This depends on the Benefit Subject to FICA field in the Benefit table and the corresponding pay code settings. If the field is selected, the budgeted benefit amount is used in the calculations.