• Correct the rate in PR, Taxes, Activate states
  1. Void the last Payroll check(s) issues for the employee(s) in PR, Processing, Void Payroll Checks, by Check (or by Employee)
  2. Reissue the payroll checks to plain paper with the correct amounts. This corrects the employee and company totals.
  3. Pay Tax Deposits based on new payroll calculation. To verify if the self-adjust calculations are complete, run the Payroll Verification Report from PR, Utilities, Print Payroll Verification Report.

OR

• Correct the rate in PR, Taxes, Activate states
  1. Do nothing. Since the employee still has checks that will be process in the first quarter, allow the system to self-adjust in future first quarter payroll checks.
  2. Pay tax deposits after final payroll calculation (after the system has had time to self-adjust) for the quarter. To verify if the self-adjust calculation are complete, run the Payroll Verification Report from PR, Utilities, Print Payroll Verification Report.

• Correct the rate in Activate states
  • If future payroll checks will be issued for the employees you can calculate the correct SUI amounts for the employees and on the next time card use manual payroll calculation and enter the SUI company amount in the Fed/State Taxes section.
  • If no further payroll checks will be processed for any employee there is nothing that can be fixed on the employee side. Make a note that the employee SUI amounts are incorrect. You will need to manually calculate the correct SUI amounts for the employees on any report that indicates the SUI amounts.
  • For Tax deposits, manually calculate and pay the correct amount the government is expecting and offset the difference to penalty/overpayment. Your Tax deposits will need to be adjusted each quarter until the rate has fully self-adjusted.
    • To pay a tax deposit including an overpayment/penalty:
      1. On the Payroll menu, select Taxes, SUI Deposits, Current Year
      2. In Total deposit amount, enter the correct amount to be paid. A tax deposit check will be generated using this amount. Enter the difference between the original figure that was in the Amount field and the new amount to be paid in the Penalty/overpayment amount field. This amount is posted to the tax penalties/overpayments account defined in the Maintain Payroll Parameters / Posting Accounts window.
         Note: Penalty/overpayment amount: If you are paying more than the original amount, enter the figure as a positive amount. If you are paying less than the original amount, enter the figure as a negative amount.
      3. Click Post, and click Yes at the "DEPOSIT INCLUDES PENALTIES/OVERPAYMENTS. The tax deposit you are about to post includes an amount for tax penalties or an overpayment. Since most tax deposits do not include a penalty or overpayment amount, you must confirm this information. OK to post this deposit and penalty/overpayment amount?" message.
    • Since the employee checks cannot be corrected, you will need to manually calculate and correct figures to the correct amount for your company for any tax reports using Enhanced Tax Reporting. In addition, you will need to note any reports you run in Sage BusinessWorks that uses the SUI calculations will also have to be manually calculated to reflect the correct SUI amounts for the employees and company totals.
      • Note: When running the Payroll Verification Report from PR, Utilities, Print Payroll Verification Report any employee who has not fully self-adjusted or who is unable to self-adjust (generally due to termination or has hit the limit already) will appear on the report.
    • To correct the General Ledger distribution, manually calculate the correct amounts and do a journal entry in GL, Entries, Post to Journals.
      • Note: If you are unsure of the amounts and the accounts for the journal entry, work with your Accountant for assistance. (For default posting accounts: Payroll and tax expense accounts see PR, Utilities, Maintain Payroll Parameters, Posting accounts OR if you use Task Codes, see PR, Utilities, Maintain Task Codes; for SUI accounts PR, Taxes, Activate states)

• Correct the rate in PR, Taxes, Activate states

1. Do nothing on the employee side and allow the system to self-adjust in a future quarter with future payroll transactions.
   Note: The self-adjusting transactions will post to a different quarter than the original transactions. If necessary, you can do a journal entry to adjust the postings for your financial reports to redistribute to a prior quarter.
   Note: Consult your Accountant for assistance with the journal entry. (For default posting accounts: Payroll and tax expense accounts go to Maintain Payroll Parameters/Posting accounts OR if you use Task Codes, see Maintain Task Codes; for SUI accounts go to PR, Taxes, Activate states)
2. For Tax Deposits, manually calculate and pay the correct amount the government is expecting and offset the difference to penalty/overpayment. Tax deposits will need to be adjusted until the rate has fully self-adjusted. To verify if the self-adjust calculations are complete, run the Payroll Verification Report from PR, Utilities, Print Payroll Verification Report.
   • To pay a tax deposit including an overpayment/penalty:
     1. On the Payroll menu, select Taxes, SUI Deposits, Current Year
     2. In Total deposit amount, enter the correct amount to be paid. A tax deposit check will be generated using this amount. Enter the difference between the original figure that was in the Amount field and the new amount to be paid in the Penalty/overpayment amount field. This amount is posted to the tax penalties/overpayments account defined in the Maintain Payroll Parameters / Posting Accounts window.
        Note: Penalty/overpayment amount: If you are paying more than the original amount, enter the figure as a positive amount. If you are paying less than the original amount, enter the figure as a negative amount.
     3. Click Post, and click Yes at the "DEPOSIT INCLUDES PENALTIES/OVERPAYMENTS. The tax deposit you are about to post includes an amount for tax penalties or an overpayment. Since most tax deposits do not include a penalty or overpayment amount, you must confirm this information. OK to post this deposit and penalty/overpayment amount?" message

***see Scenario 2 above as the steps for the resolution are the same