This process can apply to the following taxes:

• Social Security (SOC and SOC_E)
• State Unemployment Insurance (SUI and SUI_E)
• Federal Unemployment Tax (FUTA_E)
• Additional Medicare (MEDADDL)
• State Disability Insurance (SDI)
• Paid Family and Medical Leave (PFML)

• You haven't updated the tax rate or limit
• You processed checks with a blank rate or limit
• You marked the employee, pay ID, or deduction as tax exempt in error

Change the rate and/or limit in the Tax Rate setup and confirm the exemptions. Create a correcting entry using one of the options outlined below.

Update the tax rate

1. In Payroll select Setup, Taxes, Tax Rates.
2. Click List and then select your tax ID.
3. Click OK and then press Tab.
4. Type the correct information in the Percent and Limit boxes.
5. Click Save and then click Close.
6. If you changed the limit, run the Recalculate Subject-to tool. This will correct the Subject-to on each check record and employee record. Clear the totals when running this task.

Update the tax exemptions

Correct the exemption in the set up and recalculate subject-to.

Correcting entry options

• Enter a manual check for a SUI correction for each affected employee.
• Setup a self-adjusting formula for Employer paid Unemployment taxes. If you overwithheld the tax, this won’t correct the tax amounts.
• Correct taxes issued on a printed or posted check.
• Make the correction in General Ledger using Record Entries, if this is an Employer Paid Unemployment tax. Payroll reports won't reflect this entry.
• You can use Enter Direct Costs in Job Cost to enter credit amounts to the specific jobs. Leave the debit acct as it prefilled. Enter the liability account for the credit acct on the grid. Payroll reports won't reflect this entry.