1-click payroll check reversal posts the reversal to the original date
Description
Cause
Reversal date defaults to the original check date
When you use 1-click reversal, the system populates the original check date by default. The check date field now remains editable, so you can enter a different reversal date.
If you reverse a check from a prior year or closed quarter using the original date:
The reversal posts to the original reporting period.
Quarterly and annual tax reports, including W-2 forms, remain filed for that period.
The employer must determine whether amended tax filings will be necessary.
The related GL journal can post in a different reporting year.
Financial reports can become out of balance with the Payroll module.
Resolution
Reverse payroll checks in the current reporting period
Enter a date in the current payroll period instead of using the default original check date.
Start the 1-click payroll check reversal.
Review the default reversal date.
Replace the default date with a date in the current quarter.
Complete the payroll check reversal.
Issue a replacement check, if needed, in the current period.
Benefits of using the current period date
Using the current period date:
Reflects the actual reversal date on payroll tax reports.
Offsets any replacement check issued in the same period.
Reduces payroll and general ledger reconciliation issues.
Keeps payroll activity within the current reporting period.
CAUTION:
Reversing a payroll check with the original prior year or prior quarter date affects previously filed tax periods. Verify whether amended filings are necessary.
Prevent future reporting issues
Payroll administrators can prevent similar issues by avoiding payroll reversals after a quarter or year closes. Complete payroll corrections before closing the reporting period whenever possible.
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Steps to duplicate
In PR 2.20.2.0 ABC Company Setup GL and PR Options for 2019 Q4 (Must Create GL Fiscal Year 2019 first)
Create a Weekly payroll check for approximately 5 employees using AutoPay with Period Starting Date and Check Date=12/1/2019 and PR posting date 12/01/2019
Update Check Register and DTR
Change GL and PR Options for 2020/Mo 8 & 2020 Q4
Select Weekly Paycycle, Period Starting and Check Date 8/1/20
Select first employee paid in steps above, then click on Reverse Check Icon.
Select the check updated on 12/1/2019 and Click OK ****NOTE: The Check Date that populates the Header Tab is 12/1/2019 and cannot be changed.
Click Lines, then Accept and Print Icon.
Run the Tax Calculation
Preview Audit Report and Note "For Pay Period Ending Date 8/7/2020" yet Check Date is 12/1/201
Close PRDE Audit Report then Preview the Check Register with a Posting Date of 8/1/2020.
Journal Posting Date: 8/1/2020 but Check Date 12/1/2019.
Update Check Register, Preview DTR and Update DTR which is Posting 8/1/2020.
Select Employee Maintenance for that Employee, then Pay History and Tax Summary.
Reversed check shows for 12/1/2019 not 8/1/2020. 1-click payroll check reversal posts the reversal to the original date for the prior year/quarters.
Quarterly and Annual Tax Reports including W2s have been filed so requires the Employer to file all Amended tax reports.
The GL was posted to in the following year, making the financial reports unreconciled to the Payroll module.