Error in calculations using percentages

I am new to this forum but not new to Excel. I have spent countless hours trying to find a solution to my problem but have been unsuccessful.

I do payroll for our business and until this last two quarters haven't had any issues with the percentages for Social Security and Medicare calculating to within a few cents. However I'm now have issues.

When the percentages are calculated on each paycheck they are rounded either down or up to two decimal positions. However, when taking the total wages for the quarter and applying the percentages I'm several dollars off. An example is the amount of Social Security for Employees deducted from their check plus the Company contribution = $7323.03. However, when taking the total taxable wages for the quarter and multiplying by the percentage there's a difference of $14.48 (70553 *.104 (10.4%) = 7337.51) What's deducted is what I have to report on the 941, but I would like for the calculation on the report to balance with the deductions.

Any help would be greatly appreciated.

Hi Gomeztsi,

Watch your rounding, that might be the cause...

If possible, can you send a sample spreadsheet so that we can see a sample... make sure to leave out any sensitive information...

Thanks,
Dennis

Thank you for your response, however I have each row rounding down to two decimal positions. This is necessary to make sure I have accurate totals for the end of the year. I'll try to see if I can send a partial spreadsheet with the formulas I'm using. I have individual worksheets for each employee then a summary page that accumulates and totals all of the data for all employees. Each individual pay period is rounded, but when the total wages are calculated with the percentage and rounded there is a difference in the results. I'll try to get a sample spreadsheet submitted today.

thank you.