Update Tax Rates

• Go to PR, Taxes, Activate States and correct the rate

Void incorrect checks

1. Go to PR, Processing, Void Payroll Checks.
2. Void the last issued checks.

Reissue correct checks

1. Reprint payroll checks on plain paper with the correct amounts.
2. this updates employee and company totals.

Pay correct Tax Deposits

• Make tax deposits based on the corrected payroll

Verify Payroll

• Run PR, Utilities, Print Payroll Verification
• Review the report for any inconsistences

Correct the rate

1. Correct the tax rate in PR, Taxes, Activate states.

Void and reissue the employee payroll checks

1. Void the last Payroll checks you issued for the employees in PR, Processing, Void Payroll Checks.
2. Reissue the payroll checks to plain paper with the correct amounts. This corrects the employee and company totals.

Pay tax deposits

1. Pay Tax Deposits based on the new payroll calculation. Run the Payroll Verification Report from PR, Utilities, Print Payroll Verification Report.

          

Correct the Rate

• Go to PR, Taxes, Activate States and update the SUI rate

If More Payroll Checks Will Be Issued

• Manually calculate the correct SUI amount for each employee
• On the next time card, use PR, Processing, Manual payroll calculation
• Enter the correct SUI company amount in the Fed/State Taxes section

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If No More Payroll Checks Will Be Issued

• You can't edit any employee records
• You'll see that the employee SUI amounts are incorrect
• Manually adjust SUI amounts on any reports that show them

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Tax Deposits

• Manually calculate the correct deposit amount
• Pay the correct amount and offset any difference as a penalty or overpayment
• Adjust deposits each quarter until the rate self-adjusts

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To Pay a Tax Deposit with Overpayment/Penalty

1. Go to PR, Taxes, SUI Deposits, Current Year.
2. Enter the correct deposit amount.
3. In Penalty/Overpayment Amount, enter:
   • Positive if paying more than the original
   • Negative if paying less
4. Click Post, then confirm when prompted.

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Reporting Adjustments

• Manually correct SUI amounts on:
  • Enhanced Tax Reporting
  • Any Sage BusinessWorks reports using SUI calculations

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Payroll Verification

• Run PR, Utilities, Print Payroll Verification Report
• Employees who haven’t self-adjusted. For example, terminated or maxed out will appear on this report

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General Ledger Corrections

1. Manually calculate the correct amounts.
2. Post a journal entry in GL, Entries, Post to Journals.
3. If unsure, consult your accountant.
4. For account references, check.
   PR, Utilities, Maintain Payroll Parameters, Posting Accounts.
   PR, Utilities, Maintain Task Codes.
   PR, Taxes, Activate States.

 

 

Correct the rate

• Correct the rate in PR, Taxes, Activate states

Allow system to self-adjust taxes

1. Do nothing on the employee side. Allow the system to self-adjust in a future quarter with future payroll transactions.
2. The self-adjusting transactions will post to a different quarter than the original transactions. Do a journal entry to adjust the postings for your financial reports to redistribute to a prior quarter.
3. Consult your Accountant for assistance with the journal entry.
   • Payroll and tax expense accounts go to Maintain Payroll Parameters, Posting accounts
   • If you use Task Codes, see Maintain Task Codes; for SUI accounts go to PR, Taxes, Activate states

    

Tax Deposits

Manually calculate and pay the correct amount the government is expecting and offset the difference to penalty/overpayment. Adjust tax deposits until the rate has fully self-adjusted.

1. To verify if the self-adjusted calculations are complete, run the PR, Utilities, Print Payroll Verification Report.
2. To pay a tax deposit including an overpayment/penalty.
   • Go to PR, Taxes, SUI Deposits, Current Year
   • In the Total deposit amount, enter the amount you’re paying 
   • Enter the difference in the Penalty/overpayment amount field
     • If you're paying more, enter the Penalty/Overpayment as a positive amount
     • If you're paying less, enter the Penalty/Overpayment as a negative amount
3. Click Post, then Yes at the message "Deposit includes penalties/overpayments".