Updating the FICA and Medicare rates, the Default Rate, and the Default Max

After closing your payroll year-end and before entering payroll for the new calendar year, you may need to update the FICA and Medicare rates and maximums. When the rates and maximums are current, you can update all your employees simultaneously by following this procedure.

To update FICA and other rates simultaneously:

1. Open 5-3-1 Payroll Calculations.
2. In the Default Rate box, type the default rate.
3. In the Default Max box, type the default max.
4. Click File > Save.
5. At the message that states "Reminder: Use the 'Options' menu to update Rate/Maximum change(s) to employee records," click OK.
6. On the File menu, click Recall.
7. From the Options menu, click Update Employees > Update Default Rate and Maximum > ALL Employees.
8. At the message that states "Reminder: ALL employees will be updated with this calculation's default rate and maximum. (This calculation will be added to employees who do not currently have it.) Do you want to continue?," click Yes.
9. At the message that states "[number] employees have been updated," click OK.
10. All of your employees are now updated with the new FICA and other rates and maximums.