[PR] How to Correct Subject and Eligible Wages

Making corrections to Subject and Eligible wages if Basis codes were set up incorrectly. If there are corrections that need to be made to subject and eligible wages, there are 2 ways to do them.

In this example, the Car Allowance Earning code was incorrectly set up as Taxable for GA State withholding and Employee accumulations are incorrect for Employee # 450 on Pay Seq 2

1. Correct the Accumulations:

   TIP: if you do edit the Employee Accumulations from this form, any report that pulls from Payroll detail will not balance or tie out to a report that pulls from the accumulations ...ie PR Employee sequence detail report as one example

2.  You can navigate to PR/Programs/PR Employee Accumulations

   Enter the Employee number and filter by Month and Deduction code and make the changes here.

   This is what the accumulations are currently and the GA State Tax subject and Eligible amount needs to be changed. Click on the line, and make the changes

   1. Make sure that you enter the correct information and Click on Save. 

CAUTION: The Amount will automatically change for deductions or liabilities with the method of rate of gross, when you change subject and eligible values. Be sure to note the original amount prior to changing subject and eligible, and key it back in to match the original value.

    2. If you do not have access to this form or if your company guidelines do not allow these changes,     then you will need to do the following:

    3. Either open a new pay period and create 2 new pay sequences or add to additional pay                     sequences to a current pay period. I am using Sequence 3 and 4 to make my corrections

4. If you have already corrected the deduction code set up, change it back to the incorrect set up. In this example, I still show that the Car Allowance is taxable for GA State tax.

5. Go to Timecard Entry

6. Pull in reversing Timecards from the 11/16/14 period.

7. Enter the period to reverse from (11/16/14), the sequence to post to (Sequence 3) and the sequence to post from (Sequence 2) 

8. This pulls in the original transaction as a negative. Process and post this timecard entry.

9. Then in Employee Sequence Control, Process this Employee 

10. Use the Payroll Register to override the Deductions and Liabilities to make sure that the net pay matches. 

11. Process this as a manual check, use the same CM Reference number with CM Sequence 1, use the paid date of the current pay period, save and process 

12. Now, change the Payroll Deductions and Liabilities set up, so that the Earnings are no longer subject to the State Withholding 

13. I have deleted the Earning code for Car Allowance from the Basis codes of the GA State Tax Deduction. 

14. Now, go back to Timecard Entry, and open Batch 4 

15. Go to File, Add Timecard, Initialize Reversing Timecards, enter the period ending date of the payroll you are trying to correct(11/16/14), the pay sequence that you want to post to(Sequence 4) and the pay sequence you need to correct(Sequence 2)

16. Change the amounts to a positive, save, process and post this batch 

17. Process pay sequence 4 in Employee pay sequence control: 

18. You will see that the GA state tax did not calculate. Use the Payroll Register to override the rest of the deductions to match the check that was issued. Enter the Deduction for the GA State tax, and override the amount so that the net pay matches. We have now corrected the subject and eligible amounts for the GA state tax. We can reimburse the Employee on his regular pay sequence for the amount that was incorrectly withheld. 

19. Process this as a manual check using the same CM reference as the original and CM Reference Sequence of 2. 

20. Once the payroll is closed and Ledger Update process is completed, the accumulations will show the correct subject and eligible wages for the GA State Tax.