You’re offline. This is a read only version of the page.
We made tuition reimbursement entries on a paycode that was exempted from Federal taxes, but not SS and Medicare taxes. After adequate research, we determined that we should have made exempt on SS and Medicare taxes also. In addition, we determined that we exceeded the $5,150 limit on one tuition reimbursement that should have been subject to the taxes. Lastly, one tuition reimbursement was paid on the incorrect payee and now should be paid on the correct payee. How can I fix these problems?
*This post is locked for comments
Hello,
It sounds like you have a few different issues going on, so it will be easiest to address them one at a time. There is, of course, more than one way to go about this as well!
*If you have a deduction code that is marked as Sheltered from Taxes with exactly the opposite effect as how the incorrectly taxed wages were paid, you could enter a deduction, and then a paycode amount under a code with the correct Tax flags marked. This would have an in-and-out effect on the next check, make the necessary corrections during your payrun.
*Another option is to do a Manual Check Adjustment to with a Beginning Balance type. Enter transactions in the detail window to correct the taxable wages and withholdings that you want to change. If you need to touch Federal Taxable Wages, you need at least $.01 of gross pay included in the transaction for that to post and actually update Federal Taxable Wages. I would suggest putting this transaction in a batch so you can review the edit list before posting the batch. Be sure to look at the Taxable Wages column way on the far right side of the page, and also don't miss the EFIC field for the employer share. One thing I've seen some clients do, so they don't have to create a refund or payment (if the dollar amount of FICA taxes is not material) is just to offset the tax to the Federal Withholding. Or you can create a special deduction or paycode to get the tax back to or from the employee.
*The changes you need done here are one of the more complicated things to do in GP Payroll, and it's easy to make a bigger mess if you aren't sure what to do with this, so if you need more hands-on assistance, you might consider working with your GP Partner.
I hope this helps! Have a great day!
On the Canadian Payroll I would tell you to 'void' the payroll checks where you have these level of errors that likely effect remittance and net pay amounts.
I am not sure if the same can be done in the US Payroll - but I believe that your best option is to attempt to VOID and re-issue the correct Payroll documents.
If you have already issued the payments to the employees you will have to correct that at the time you are correcting the Payroll documents.
Good luck. Keep posting details and someone with specific US Payroll knowledge will be able to help more than I am here - but this is a starting point.
Stay up to date on forum activity by subscribing. You can also customize your in-app and email Notification settings across all subscriptions.
#1
André Arnaud de Cal...
291,253
Super User 2024 Season 2
#2
Martin Dráb
230,188
Most Valuable Professional
#3
nmaenpaa
101,156
Share
Report
All responses (
Answers (