Issue/Symptom/Question

New OR-STT tax setup was entered after 7/1/18, and will require adding the earnings to the employees affected

Applies To

Payroll Manual Check Adjustment

Oregon State Transit Tax (OR-STT)

Resolution/Fix/Answer

Create Manual Payroll Check adjusting entries to increase taxable earnings for the tax type.

An example adjustment for an employee will be:  

Deduction Information entry setup prior to adjustment:

• Query Deduction to be used for the adjustment
• go to Taxable/Non-Taxable tab
• Deduct Before/After taxes are calculated:  Default = "B" (Before tax)
• State exception:
• State = OR
• Tax Type = OR-STT
• Before/After = "A" (After tax)

Manual Check Entry # 1

Document Tab:

• Check# = 0
• Empl Id 
• Check Date = select date to post - if it should be in a different quarter, consider that
• Amount = $0.00
• Accrue PTO:  = N
• Process Recip Rules? = N
• Process Linked Jurisd? = N
• (all questions at the bottom of the page need to be NO)

Distribution Tab:

• Work Date = same as above
• OU Id =  employee's OU on Earnings History Query record
• Account# = select an adjustment account to use - will be net zero impact)
• Gross Pay = Positive amount equal to the addition to earnings needed
  •    Default Employee Info button: All states need to be OR

Deductions and Fringes tab:

• Deduction# = Adjustment deduction selected above
• Amount =  Positive amount equal to Gross Pay entered above (creates net zero check)

Verify that the Distribution tab's Default Information State codes remain changed to OR (occasionally if you don't tab through the fields, the changes don't stick)

Go to the Document tab and arrow down to next record.

Enter this information for all relevant employees, for the difference between the current employee earnings and what the OR-SIT earnings should be.

When all employees have been entered, exit the screen to distribute this portion of the adjustment.
   Note: you can also distribute each employee individually before entering the next employee check info

Change the Deduction's taxability:

• Query Deduction used above
• go to Taxable/Non-Taxable tab
• Change the OR-STT row to "B" (before tax)

Manual Payroll Check entry #2 

Re-enter all of the above information, with opposite signs (where previously positive, enter a negative amount)

This second entry per employee will zero the account balance, zero the deduction amount, and correct the state gross pay that was increased with the first entry.

Example:

Document tab: All entries the same

Distribution tab:

• Same work date as document
• OU on Earnings History Query
• Account used in first adjustment entry
• Gross Pay = Negative amount entered as positive above
• Default Info button:
• Change all states to OR again

Deduction tab:

• Deduction used in prior entry
• Amount Negative amount, same as the Gross Pay amount

***NOTE:  After all of these entries have been made, query each employee's Employee Earnings Query screen for 7/1/18 through 12/31/18;

• The OR State OR-STT Earnings and Taxable Earnings columns should match the SIT amounts

• The State Gross Pay should match the SIT amounts

• The Deduction tab's Deduction amount should be zero