Move State Taxable Earnings and refund taxes withheld

Owned by Sherry Gnant (Deactivated)
12 19, 2018

Issue/Symptom/Question

Employee was paid with the wrong state code, and will need these earnings moved to the right state, and taxes withheld will need to be refunded.

Applies To

Payroll > Setup > Deduction Information
Payroll > Exception Checks > Manual Checks
Payroll > Inquiries > Employee Earnings History Query

Resolution/Fix/Answer

SIT Earnings will need to be moved from incorrect state to the correct state.
Taxes will need to be refunded to the employee's next check

Deduction Information screen

  • select a deduction to use for the adjustment of earnings and taxes
  • Set the 'As a Default, deduct (Before or (A)fter taxes are calculated' to "B"
  • Enter the From State code in the State/Province Exceptions box for Tax Type SIT = "A" 
  • Commit record

First Manual Check FROM state transfer;  

Document tab

  • Check # = 0
  • Employee Id = affected emp id
  • Check Date: = date selected for the correction
  • Net Pay = SIT employee tax amount (positive)
  • Accrue PTO = N
  • Process Reciprocity Rules = N
  • Process LInked Jurisdictions = N

Distribution Tab

  • Work Date = Check Date
  • OU Id = OU Id on Employee Earnings History record
  • Account = Select account to be used as the adjustment account - will ultimately net to zero
  • Gross Pay = negative total dollar amount to move from incorrect state (found on earnings history record)
  • Default Employee Info button
    • Change the W/H state code to FROM State
    • Tab out of field and Commit record

Withholding - USA tab

  • Enter SIT as the tax type
  • Enter the FROM state
  • Enter the negative tax amount to remove

Deduct/Fringes tab 


  • Deduction # selected
  • Negative amount - same as Gross Pay

This should result in a balanced check - Distribute this Manual Check


Change Deduction Information screen

  • Delete the FROM state row in the State/Province Exceptions box
  • Add the TO State code in the State/Province Exceptions box for Tax Type SIT = "A" 
  • Commit record


Second Manual Check TO State transfer

Document tab

  • Check # = 0
  • Employee Id = affected emp id
  • Check Date: = date selected for the correction
  • Net Pay = $0.00
  • Accrue PTO = N
  • Process Reciprocity Rules = N
  • Process Linked Jurisdictions = N

Distribution Tab

  • Work Date = Check Date
  • OU Id = OU Id on Employee Earnings History record
  • Account = Same GL Account used in the first check
  • Gross Pay = Positive total dollar amount to move to correct state (found on earnings history record)
  • Default Employee Info button
    • Change the W/H state code to TO State (or verify correct state displays in the W/H State Code field)
    • Tab out of field and Commit record

Deduct/Fringes tab 

  • Deduction # selected
  • Positive amount - same as Gross Pay


This should result in a balanced check - Distribute this Manual Check


Third Manual Check to enable reimbursement of the employee taxes withheld in error from the wrong state.

Document tab

  • Check # = 0
  • Employee Id = affected emp id
  • Check Date: = date selected for the correction
  • Net Pay = Negative employee tax amount to refund
  • Accrue PTO = N
  • Process Reciprocity Rules = N
  • Process Linked Jurisdictions = N

Distribution Tab

  • Work Date = Check Date
  • OU Id = OU Id on Employee Earnings History record
  • Account = Same GL Account used in the first check
  • Gross Pay = $0.0

Deduct/Fringes tab 

  • Deduction # selected
  • Positive amount - same dollar amount as Net Pay


This should result in a balanced check - Distribute this Manual Check


When you pay the employee's next check, you can also add the negative deduction to their timecards, equal to the amount of the tax amount withheld in error




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