Understand withholding differences

Federal and State income tax withholding use tax tables and don't automatically self-adjust on future payrolls.

If you don't adjust the withholding difference, the amount can affect the employee's tax liability when filing their tax return.

Calculate the withholding adjustment

1. Calculate the withholding difference for each employee.
2. Multiply the difference by the number of payrolls processed using the previous tax tables.

Enter the current payroll

1. Select PR, Processing, Time Card Entry.
2. Enter the timecards for the current payroll.

Calculate payroll

1. Select PR, Processing, Automatic Payroll Calculation.
2. Calculate the timecards.

Adjust the withholding

1. Select PR, Processing, Manual Payroll Calculation.
2. Select the employee.
3. Click Yes to use the calculated check as the basis.
4. Click Fed/State taxes....
5. Add or subtract the withholding difference from the appropriate employee tax field.
6. Repeat these steps for each affected employee.

Additional information