Issue/Symptom/Question

We need instructions on how to adjust an employee's FIT/FICA/MEDI/FUTA/SUT/SIT wages without affecting Gross/Net pay.

We need instructions on how to adjust an employee's SUT wages and Employer withholding without affecting Gross/Net pay.

Applies To

Manual Check Entry screen
Payroll> Exception Checks> Manual Checks

Master Deductions
Payroll> Setup> Deductions, Reimbursements, and Other Compensation

Employee Earnings History Query
Payroll> Inquiries> Employee Earnings History Query

Resolution/Fix/Answer

This adjustment can be used to adjust any/all of the following wage bases: FIT/FICA/FUTA/SUT/SIT. 

Please attempt this in your test database before making any entries in Prod.

This wage adjustment will be accomplished through the use of 2 manual check adjustments:

Step 1: Create a Master Deduction

• The deduction should be calc base 1
• The account will act as a wash account
• On the Taxable/Non Taxable tab
  • The "As a default, deduct (B)efore or (A)fter taxes are calculated(B/A)?" field should be set to A
  • Create federal level "(B)efore Tax" exceptions to any of the following wage bases that need adjusting: FIT/FICA/FUTA
  • Create "(B)efore Tax" State level exceptions for the following wage bases that need adjusting: SUT/SIT.  

Step 2: Create and Distribute the 1st Manual Check

• On the Document Tab
  • Enter 0 in the "Check #" field
  • Enter the intended distribution date as the "Check Date"
  • In the "Net Pay" field enter, as a positive number, the amount the taxable wage bases need to be increased by
  • Switch the last three fields to "N"
• On the Distribution Tab
  • Enter the same date used for the "Check Date"  in the "Work Date" field
  • Enter the Employee's OU in the "OU" Field
  • Enter the Account set up on the Deduction master in the "Account #" field
• On the Deduct/Fringes tab
  • Enter the Deduction from Step 1 in the "Deduction #" field
  • In the "Amount Deducted" field enter, as a negative number, the amount the taxable wage bases need to be increased by.
• Close out of the Manual Check Screen to distribute the adjustment.

Step 3: Adjust the taxability of the Deduction in the Master Deduction screen

• Query back the adjustment created in Step 1
• On the Taxable/Non Taxable tab:
  
  • Switch the Before tax before tax exceptions to (A) tax
    Note: Do not change the  "As a default, deduct (B)efore or (A)fter taxes are calculated(B/A)?" field
    Note: Do not delete any of the individual exceptions.

Step 4: Create and Distribute the 2nd Manual Check

• On the Document Tab
  • Enter 0 in the "Check #" field
  • Enter the intended distribution date as the "Check Date"
  • In the "Net Pay" field enter, as a negative number, the amount you adjusted wages by in Step 2
  • Switch the last three fields to "N"
• On the Distribution Tab
  • Enter the same date used for the "Check Date"  in the "Work Date" field
  • Enter the Employee's "OU" in the OU FIeld
  • Enter the Account set up on the Deduction master in the "Account #" field
• On the Deduct/Fringes tab
  • Enter the Deduction created in Step 1 and Altered in Step 3 in the "Deduction #" field
  • In the "Amount Deducted" field enter, as a positive number, the amount you adjusted wages by in Step 2
• Close out of the Manual Check Screen to distribute the adjustment.

Note: Because there is only ever Employer Only withholding for FUT/SUT, Penta automatically calculates the withholding amount based off of the Adjustment in Step 2. 

Note: To adjust withholding on SIT/FICA/FIT a separate adjustement will need to be made.

Note: Please review the results for each employee this is performed on using the Employee Earnings History Query screen.