Issue/Symptom/Question

Due to an incomplete manual check adjustment, we have an employee with state gross wages in a state (State X) that he never actually worked in. We need instructions on how to remove only gross wages from State X.

Applies To

Payroll 

Manual Check Adjustments

Master Deduction screen

Resolution/Fix/Answer

Please confirm the results of this transaction in Test before performing the below steps in Prod. Payroll adjustments are subject to numerous environmental factors and are not guaranteed to have the same affect for every Penta user. It is crucial that these steps are ran in Test, event if that means Test needs to be refreshed. Penta is not responsible for any adjustments done in Production if they have not first been performed in an up to date Test environment.

To accomplish this adjustment an adjustment deduction needs to be set up, all relevant employees will need to have their resident state (Set on the employee master) set to the State X (the example we are using), and finally a single net-zero manual check adjustment will need to be ran.

Preface I am using WI as an example of "State X" or the state which wages will be removed from. These instructions should be applicable to all states, however.

Step 1 - Set up adjustment deduciton

1. Navigate to the Master Deductions screen
2. Create a new deduction
   • 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 "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, not just FICA and FIT as is denoted in the screenshot.
       
     • 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 following tax types: PL, SDI, SUT, SUI,SIT,WC, not just the PL and SDI denoted in the below screenshot. 
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3. The Taxable/Non Taxable tab will conclude the setup of the master deduction

Step 2- Change the state of residence on the relevant employee's master record

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 (In this example the state having wages removed form it is WI)
   1. Res W/H St
   2. UC ST
   3. WC ST

Step 3- Create the Manual Check Adjustment

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 relevant Employee in the "Employee Id" field
   3. In the "Check Date" field enter the date which 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 (or in this case WI)
      
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 remove from State X (or in this case WI)
      
5. Exit out of the Manual Checks screen to distribute the adjustment.