This article is meant to solve for Medicare Addl Tax calculation error discovered in the same calendar year that wages were paid caused by the following:

  • A high compensation employee was not setup for Medicare Addl Tax in QuickBooks Desktop and was paid over $200,000 in Medicare wages.
  • As a result, the Medicare Addl Tax amount and wages did not calculate and report correctly for this employee.



Read below for written instructions:

  1. Run Payroll Checkup.  If you receive an error, repeat Step 4 above to enter additional adjustments.  Ensure Payroll Checkup has no errors before moving forward.
  2. File an Amended 941 with the IRS for each past Quarter you already filed.