Tax amounts on check from an outside payroll service such as ADP or Paychex may be different then what calculates in Payroll.

Refer to the considerations below for when there is a net pay variance from your third party outside payroll service

There may be a difference in employee, pay, deduction, or tax setup between Payroll and the third party payroll service.

Confirm the Employee filing status and exemptions:

1. From the Payroll Setup menu, select Employees.
2. Select an Employee, note the Pay Group.
3. Go to the Entry Info tab.
4. Verify that the Filing status and Personal Exemptions match the third party payroll service.
5. Click State and select the tax State for the employee.
6. Verify that the Status, Personal Exemptions, and Misc Tax Codes match the third party payroll service.
7. Click Taxes and verify that the Adj method and Adj Amount match the third party payroll service.

Verify that the number of pay periods matches the third party payroll service:

1. From the Payroll Setup menu, select Pay Groups.
2. Using the Pay Group noted above, verify that the Pay Frequency matches the frequency used by the third party payroll service.

Verify that the taxes in each system are setup the same way. To review the setup of taxes in Payroll, use these steps:

1. In Payroll, from the Setup menu, select Taxes, Tax Rates.
2. In the Tax Rate Setup window, enter a Tax ID or click List to find the tax ID for which you want to verify the setup.
3. Press ENTER and review the setup. For example, note whether the tax has the correct Tax level, Tax type, and Table type.
4. To save your changes, click Save, and then Close.If you did not make any changes, click Cancel and then Close.

Verify that the pays and deductions have the same tax exempt status as the third party payroll service:

See How can I see which pays are tax exempt and which deductions are pretax? for steps to verify statuses.

 

If you make any changes to your setup and want to see how the changes affect the check in Payroll, process your checks.
For example:

• If you process in the Enter Checks window, after you process, click Tax to review the amounts for each tax.
• If you use Tasks, Process Payroll, review the journal that you get after processing to see the amounts for each tax on a check.