Correct a payroll check with a pay item that had incorrect taxability
If you set up and used the wrong pay item on checks for an employee, there is a way to correct is when the taxability is not the same. Use the following steps:
- SelectSetup, thenPayroll Items.
- Edit the incorrect pay item.
- Select theTax Exemptionstab.
- Mark or clear any checkboxes.
- PressEnterto save your changes.
- A window will ask for an effective date of the taxability change. Taxable wages for affected employees are updated, but the amounts on the payroll checks are not changed.
- To correct the payroll checks, you can make up the amounts on future checks, or delete and re-enter the payroll checks.
- SelectActions, thenEnter Transactions.
- Select a check for an affected employee.
- SelectEdit, thenAdjust Taxable Wages.
Notice the adjusted columns have red numbers, and there is a note entered in the Notes column explaining that the adjustment is due to a change in the taxability of a pay item.
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