Fixes #8369 — payroll_tax_gross_wages doesn't add back in traditional…#8374
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DBailey0629 wants to merge 1 commit into
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Fixes #8369 — payroll_tax_gross_wages doesn't add back in traditional…#8374DBailey0629 wants to merge 1 commit into
DBailey0629 wants to merge 1 commit into
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… traditional payroll retirement contributions to irs_employment_income Traditional elective deferrals 401(k) and 403(b) reduce Box 1 (income tax wages) but must be included in Boxes 3 and 5 (FICA wages) per IRC 3121(a). Previously, payroll_tax_gross_wages used irs_employment_income which had already deducted these amounts, understating SS/Medicare wages. Fix: new fica_pre_tax_contributions parameter and variable containing only Section 125 items; payroll_tax_gross_wages now uses employment_income minus that FICA-specific deduction list.
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… payroll retirement contributions to irs_employment_income
Traditional elective deferrals 401(k) and 403(b) reduce Box 1 (income tax wages) but must be included in Boxes 3 and 5 (FICA wages) per IRC 3121(a). Previously, payroll_tax_gross_wages used irs_employment_income which had already deducted these amounts, understating SS/Medicare wages.
Fix: new fica_pre_tax_contributions parameter and variable containing only Section 125 items; payroll_tax_gross_wages now uses employment_income minus that FICA-specific deduction list.