Deferring FICA for specific employees

Overview

You are implementing Social Security FICA deferrals using CORT Payroll and would like to know if there is a way to apply this deferral only to specific employees when using the 'Defer Employee's FICA' option.

Note: the option for FICA Deferral is available in versions 2020.8 or more recent. If you need access to this feature but do not have it yet, please refer to the NuView Payroll Release Announcements page.

Solution

FICA deferrals can be enabled on a global level (all employees), payroll level (division or department), or for each employee specifically.

Enabling FICA on a global level

Navigate to the Options > System Options > Company Special Tax Instructions tab and check the 'Defer Employee's FICA' box. This option will override the payroll FICA option, which means that even if Payroll Control Information does not have deferring enabled it still will defer employee’s FICA. 

Enabling FICA on a payroll level

Check the 'Defer Employee's FICA' in the Payroll Control Information tab: this will enable FICA deferring for each payroll separately, for example, a specific division or department in the current payroll.

Enabling FICA deferral for specific employees

  1. Under the Options > User Defined Data Definitions tab, add a New Item with DFICAEMP name
  2. Define its Value as one of the following:
  • A: always defer FICA, regardless of bi-weekly gross
  • E: except employee from FICA deferring (do not defer), regardless of bi-weekly gross 
  • Empty field/no value: ignore DFICAEMP User-Defined Data parameter

Find below an example setup:

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For further details please see attached the official documentation.

 

Another way to set FICA deferring is to use the Computation Definition DFCEMEXC. It should return the same values as the User-Defined Data DFICAEMP above (A, E, or empty/no value), but DFICAEMP should be disabled (set as empty) or removed, otherwise, it overrides DFCEMEXC.

For more information, please refer to the 'Employee FICA deferral' file attached to this article. If you need further support, please submit a support ticket.

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