| How to adjust payroll tax deposits |
Description | If you void a payroll check and don't replace, the system will correctly reduce the next liability amount. You don’t need to post an adjustment. |
Resolution | Pay a tax deposit that includes a penalty/overpayment - Go to PR, Taxes, then select the desired tax deposit.
- Enter or update the amount you’ll be paying in the Amount or Total deposit amount field.
- Enter any difference in the Penalty/Overpayment field. TIP: Enter the amount in the Penalty/Overpayment field first. The system will automatically adjust the Amount field.
- If you’re paying more than the original amount, enter a positive amount
- If you’re paying less than the original amount, enter a negative amount
- If you need to pay a penalty with no liability due, enter the amount in the Penalty/Overpayment field
- Post the deposit.
- Select Yes to the message "DEPOSIT INCLUDES PENALTIES/OVERPAYMENTS..."
NOTE: Amounts for penalties/overpayments post to the account defined in Maintain Payroll Parameters, Posting Accounts. Short pay a tax deposit TIP: Short pay a tax deposit due to pending payroll adjustments or voids, or pay less without offsetting the penalty/overpayment account. - Go to PR, Taxes, and click the desired tax deposit.
- Enter or update the amount you’ll be paying in the Amount or Total deposit amount field. The system recalculates the tax distribution amounts based on the smaller amount you’re paying.
- Select Post.
NOTE:
- To move the amount from the penalty/overpayment account, enter a journal entry under GL, Journal entries, Standard
- An overpayment for SUI tax in one quarter will carry over to the next quarter automatically. There’s no need to use the Penalty/Overpayment amount field
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