Issue/Symptom/Question

Increase or decrease SUT Earnings for a certain state.

Applies To

Penta for Windows

Payroll

Resolution/Fix/Answer

Step 1: Reduce SUT Wages and tax amount:

 Set up Master Deduction 

1.  Create a new deduction in the Master Deductions window. 

2. Enter the required field values in the Master Tab. Use Calculation Base 1 and Frequency 1. 

3. Enter the following values in the Taxable/Non-Taxable tab: 

4. ‘As a default, deduct (B)efore or (A)fter taxes are calculated (B/A)?: B 

5. In the State/Province Exceptions box; 

6. Exception 1: 

7. State/Prov Code:

8. Tax Type Code: SUT 

9. Before/After Code (B/A): A 

 Enter Manual Check Adjustment to remove/increase the SUT earnings and tax amount

1. In the Document Tab, enter the following values: 

2. Check #: 0 

3. Employee Id: Employee ID

4. Check Date: Choose based on the appropriate accounting period for adjustment 

5. Net Pay: 0  

6. In the Distribution Tab enter the following values: 

7. Work Date: Same as 1.c above 

8. Enter OU and Account you wish to distribute these funds to. This account will serve as a clearing account because it will be an in and an out. 

9. Gross Pay: enter adjustment amount (positive to increase, negative to decrease)

10. Click the Default Employee Info button 

11. W/H State code: state code where adjustment is needed

12. UC State Code: state code where adjustment is needed

13. Close the pop-up 

14. In the Deduct/Fringes Tab enter the following values: 

15. Deduction #: Deduction number created above 

16. Amount Deducted:  amount entered in step nine above

17. Distribute the Batch 

Step  2: Increase Federal and State gross wages:

1. Set up/update an adjustment deduction

   1. Navigate to the Master Deductions screen

   2. Create a new deduction or update an existing one with the following:

      • Master Tab:

        • The accrual account defined on this tab will be used again as the Debit account on manual check adjustment, thus making whatever account chosen on the deduction a wash account. 

      • Taxable/Non-Taxable Tab

        • Set the "As a default, deduct (B)efore or (A)fter taxes are calculated (B/A)?:" Field to A (After Tax)

        • In the "Federal Exceptions" box Enter a line for each Federal Tax type: Each line should have a "Before/After Code" if B (Before)
          Note: There should be a line created for FICA, FIT, and FUT.

        • In the "State/Province Exceptions" box Enter a line for each Each State Tax Type that could apply to the employee. Each line should use % as the State Code to denote "All States" with a "Before After" code set to B (Before)
          Note: There should be a line for each of the tax types of PL, SIT, SUT, WC.

        • The Taxable/Non-Taxable tab will conclude the setup of the master deduction

Step 3 - Verify the state of residence on the relevant employee's master record - make sure it matches the state you are correcting.

1. Navigate to the Employee Payroll Information screen

2. Query back the employee whose wages will be adjusted

3. Change the following fields to the state where wages are to be removed

   1. Res W/H State 

   2. UC ST

   3. WC ST

Step 4 - Create the Manual Check Adjustment to adjust the federal and state gross wages.

1. Navigate to the "Manual Checks" screen
   Payroll> Exception Checks> Manual Checks

2. On The Document Tab:

   1. Enter a "Check #" of 0

   2. Enter the relevant Employee in the "Employee Id" field

   3. In the "Check Date" field, enter the date that you would like the distribution to take place
      Note: For most Users this date is the 12/31/XX

   4. Enter a value of 0 in the Net Pay field

   5. Enter a value of N in the final three fields of the Document tab

3. Navigate to the Distribution Tab and enter the following:

   1. In the "Work Date" field enter the same value as was entered in the "Check Date" field on the Document 

   2. In the OU Field enter the Employee's OU 

   3. In the Account field enter the account set as the "Accrual Account" in the Master Deduction screen

   4. In the "Gross Pay (Excl. Add To Gross Fringes):" field enter, as a negative amount, the wages which you wish to remove from State X

4. Navigate to the Deduction Tab and enter the following:

   1. In "Deduction #" field enter the deduction set up in Step 1

   2. In the "Amount Deducted" Field enter, as a negative number, the wages which you wish to adjust from State X

5. Exit and distribute the manual check.