[PR] How to Correct Subject and Eligible Wages

Correcting Subject and Eligible Wages for Incorrect Basis Codes

Use this process when earnings were incorrectly set as taxable or have incorrect employee accumulations.

Example: An Allowance earnings code was incorrectly set as taxable for WA State, and an Employee has incorrect accumulations on Pay Seq 2.

Step 1: Correct Employee Accumulations (Optional)

• Navigate to PR > Programs > PR Employee Accumulations.

• Enter the Employee number, filter by Month and Deduction code.

• Update Subject and Eligible amounts and click Save.

Tip: Changing accumulations here may cause payroll detail reports to not tie to reports based on accumulations.
Caution: Deductions/liabilities with Rate of Gross method will automatically recalculate. Note the original amounts and restore them if needed.

Step 2: Reversing Timecards Method (if accumulations cannot be edited)

1. Open a new pay period and create two new pay sequences (e.g., Sequence 3 and 4) or use additional sequences in the current pay period.

2. If the earnings code setup was corrected, temporarily revert it to the incorrect setup (e.g., Car Allowance taxable for WA State).

3. Open Timecard Entry.

4. Use File > Add Timecard > Initialize Reversing Timecards.

   • Enter the period to reverse, the sequence to post to (e.g., Sequence 3), and the sequence to post from (e.g., Sequence 2).

5. This pulls the original transaction as a negative. Process and post the batch.

6. In Employee Pay Sequence Control, process the employee.

7. Use the Payroll Register to override deductions/liabilities so net pay matches.

8. Process as a manual check with the same CM Reference number and current pay period date.

Step 3: Apply Correct Setup

1. Update payroll deductions and liabilities so the earnings code is no longer subject to WA State Tax.

2. Remove the earnings code from the basis codes of the WA State Tax deduction.

3. Open the next timecard batch (e.g., Sequence 4).

4. Use File > Add Timecard > Initialize Reversing Timecards, enter the original payroll period, the sequence to post to, and the sequence to correct.

5. Update amounts to positive, save, process, and post.

6. Process in Employee Pay Sequence Control.

7. If WA State Tax does not calculate automatically, override the deduction amounts in the Payroll Register so net pay matches.

Step 4: Finalize

• Process as a manual check using the same CM Reference as the original, sequence of 2.

• After payroll is closed and Ledger Update is complete, accumulations will reflect the correct subject and eligible wages for WA State Tax.