Removing local Gross Pay, Earnings and Taxable Earnings
Issue/Symptom/Question
We have an employee that has wages accrued for local tax type code KC, no local tax was calculated. Please help us remove the below amounts in their entirety.
EXAMPLE: Local Tax Type KC | |
|---|---|
Local Gross Pay | $1,500.00 |
Local Earnings | $1,500.00 |
Local Taxable Earnings | $1,500.00 |
Local Tax | $0 |
Applies To
Payroll> Exception Checks> Manual Checks
Resolution/Fix/Answer
This process can be done manually; it simply involves four separate manual check adjustments.
Run 1st manual check adjustment: Remove the local earnings and taxable earnings:
Document Tab:
Check # should be 0
Employee Id
Check Date will be the posting date
Net pay should be 0
Process Reciprocity Rules, and Process Linked Jurisdictions should be set to "N"
Distribution Tab:
Work Date s/b the same as the Check date
OU Id s/b the employee's OU
Account is not relevant for this entry
Gross pay should = 0
Default Employee Info Pop-up
Define the local code KC in the home and work locals
Taxes Withholding Tab - Local Box
Define the Locality KC in the local box
Enter -1500.00 (negative) in the Local Taxable Earnings Field
Distribute this manual check before proceeding with the next adjustment
Run 2nd manual check adjustment: Remove the gross pay from local code KC
Document Tab:
Check # should be 0
Employee Id
Check Date is the posting date
Net pay should be -1500.00 (negative)
Process Reciprocity Rules, and Process Linked Jurisdictions should be set to "N"
Distribution Tab:
Work Date s/b the same as the Check date
OU Id s/b the employee's OU
The account will act as a wash account and, therefore, is not relevant (as long as the same account is used for every adjustment). Choose whatever account you are comfortable with these wash entries being posted to.
Gross pay should = -1500.00 (negative)
Default Employee Info Pop-up
Local Code KC should be defined for Home and Work
Distribute the manual check
Run the 3rd manual check: Add back the earnings for Local Code KC
Document Tab:
Check # should be 0
Employee Id, should be the employee which you are trying to affect wages
Check Date is the posting date
Net pay should be 0
Process Reciprocity Rules, and Process Linked Jurisdictions should be set to "N"
Distribution Tab:
Work Date s/b the same as the Check date
OU Id s/b the employee's OU
Account will act as a wash account and therefore is not relevant (as long as the same account is used for every adjustment). Choose whatever account you are comfortable with these wash entries being posted to.
Gross pay should = 0
Default Employee Info Pop-up
Local Code KC in both home and work fields
Taxes Withholding Tab - Local Box
Define the Locality KC in the local box
Enter 1500.00 (positive) in the Local Taxable Earnings Field
Distribute the check
Run the 4th manual check: Add back the gross wages.
Document Tab:
Check # should be 0
Employee Id
Check Date is the posting date
Net pay should be 1500.00 (positive)
Process Reciprocity Rules, and Process Linked Jurisdictions should be set to "N"
Distribution Tab:
Work Date s/b the same as the Check date
OU Id s/b the employee's OU
Account will act as a wash account and therefore is not relevant (as long as the same account is used for every adjustment). Choose whatever account you are comfortable with these wash entries being posted to.
Gross pay should = 1500.00 (positive)
Default Employee Info Pop-up - NO Local code should be added
Distribute the check
Check the employee earnings to make sure the amounts are correct.
NOTE: This adjustment can be used for other Local Tax Type Codes - KC is just the example.