Issue/Symptom/Question

How to update Employee FIT tax amount without updating any other wages and/or taxes.

Applies To

Penta for Windows

Payroll > Inquiries > Employee Earnings History Query

Payroll > Setup > Deductions, Reimbursements and Other Compensation

Payroll > Exception Checks .> Manual Checks

Resolution/Fix/Answer

This should be completed in your TEST environment to make sure the updates are as expected. End results should be the FIT Tax Amount will be adjusted without affecting any other wages or taxes. 

 1. Review/write down employee Federal, State and/or Local wages to make sure the correct amounts are updated. 

2. Add or update an Other Compensation entry.

1. Calc Base = 3 - all other fields leave blank or as defaulted
2. In the Tax Code tab, make sure the Include In All Earnings is set to 'N'
3. In the FEDERAL EXCEPTIONS enter tax code = FIT

3. Enter a Manual Check.

1. Document tab - Check #0, Employee ID, Check Date = date within the pay period that needs to be affected, Net Pay = NEGATIVE OR POSITIVE wage adjustment, all other fields = N.
2. Distribution tab - enter the same date as in the Document tab, enter OU and Account number of the employee, leave all other fields as defaulted.
3. Withholding - USA tab:
   1. Enter the FIT as a NEGATIVE OR POSITIVE amount for the total taxes that need adjusting.
   2. Leave all other fields as defaulted.
4. Other Compensation tab - use the Other Comp number set up, enter the total wages that need adjusting.
5. Distribute the batch.

4. Enter a new Manual Checks batch.

1. Document tab - Check #0, Employee ID, Check Date = date within the pay period that needs to be affected, Net Pay = 0.00, all other fields = N.
2. Distribution tab - enter the same date as in the Document tab, enter OU and Account number of the employee, leave all other fields as defaulted.
3. Other Compensation tab - use the Other Comp number set up, enter the NEGATIVE OR POSITIVE total wages that need to be adjusted.
4. Distribute the batch.