Issue/Symptom/Question

We processed reimbursements that were paid to several employees in the state of Washington which has the special Washington Industrial Insurance tax based on hours. The tax was calculated on these reimbursements when it should not have been, we need to know what is causing this tax to be deducted since the tax is based on hours.

Environment

Penta for Windows

Employee pay inquiry:

Payroll > Inquiries > Employee Earnings History Query

WA-IND Tax Update:

Payroll > Setup > Taxes > Payroll Tax Maintenance

Resolution/Fix/Answer

When Penta processes an employee payroll check with WA-IND tax, a review is done on the payroll hours worked versus the tax taken for the tax year. If the tax taken is calculated at a lower rate than expected for the number of hours worked, Penta will self-adjust so the correct amount of tax is calculated.