Payroll taxes Social security ER and Medicare ER used to be defined as percentage or formula. We have introduced new payroll category types 'Social security' and 'Medicare' for payroll taxes.
(Figure 1)
At payroll category setup (Figure 1) select type 'Social security' or 'Medicare': from the top menu go to Setup > Payroll settings > Payroll categories > select payroll tax Social security (ER). Review the “Tax level:” and in the “Type:” field select the “Social security tax” from the drop down list.
(Figure 2)
For the Medicare (Figure 2): go to Setup > Payroll settings > Payroll categories > select payroll tax Medicare tax (ER). Review the “Tax level” and in the “Type:” field select the “Medicare tax” from the drop down list.