Had a client that created the 2012 Year-end wage file today (16-Jan) but they had applied the 2013 tax tables on 11-Jan. Two significant events occurred
1. They were editing a W2 and recieved the following error - 'Medicare Wages and Tips can't exceed the Medicare wage and tip limit of $200,000'
2. The W2 validation report was showing errors on every employee becasuse it was stating the withholding should have been at 6.2%.
This particular customer does not submit payroll via electronic filing so in order to correct both issues, so all I updated was he table UPR10100 (the Payroll Year End Header Table) to reflect the correct tax rate and correct maximum taxable wages. (set FICAMWLM = 0.00000 (for unlimited) and set FICASSTR = 420000 (4.20%))
@Microsoft Support - this will need to be an area to test for 2013 yearend processing (eleven months from now) so that the maximum wage limit does not just grab the first tier of wages from the FICAM tax table. I know the U.S. Governement has not yet determined if the two different rates (normal tax and the surcharge) will have to be reported separately on W2's next year.