TAX ADJUSTMENTS

[Former Member]

Hi Gurus,

I have a problem with the tax adjustments. We had a employee who is terminated on Jan10 so we had to pay some additional amount so we had done a off cycle for the employee by using IT267 and ran the US payroll and money is transfered and posting is done every thing is smooth, but by mistake on IT267 they put wrong wage type and processed the off cycle payroll because of which the federal with holdings are calculated additionally. Now employee came back and he wants the money to be returned. I tried to change the IT267 with the correct wage type and processed the off cycle again but still it's calculating the taxes as a previous wage type but not calculating the taxes with respect to the new wage type. So what is the best way to return the employee addition federal with holing taxes.

Can we do this through adjustment work bench if so which subtype I need to use this to adjust the taxes and pay back the employee with the difference amount.

Any help is appreciated.

[Former Member]

check if you can run the offcycle payroll adjsutment for the employee using the subtype adjt in in infotype 227 and by running this correct the previous issue of employee.

[Former Member]

If we want to use the adjustment work bench with the Subtype ADJT which wagetype you want me to put ypu want to put the correct wage type and process it. If I put the correct wage type do it fix the issue.

[sikindar_a]

not a good solution let me put like this

Did u reversed the doc which u have posted to fico with wrong figures

if u have done the than delete the old record and create the new record with corrected figures

As Control Record is already Set u cannot reset (we can reset it but not a Godo Option )

now run the pay roll for other period by mentioning the period which u want to run in ur pay roll driver

[Former Member]

No I don't think we can reverse the FIco posting just for this employee if we want to do that we have to do it for every body correct me if I am wrong.

[sikindar_a]

but

Raj dont u want to correct wrong figures which are posted in the doc ?????

the figures may differ right

[Former Member]

Yes for sure I want to correct them too.

[Former Member]

Raj,

You have a couple of options for this correction. First of all, can you be a little more clearer with your requirement. If the employee was not suppose to pay federal tax, than you can cut an additional check to refund the tax amounts. However, if the tax calculation is completely wrong..The best way to proceed would be to have the employee return the net pay or if the net pay is still in the employee's bank account, reverse this through your bank..And make sure the wage type config is correct and re-issue the complete check, with voiding the incorrect check...

[Former Member]

Employee is supposed to pay the federal tax but the taxes we calculated wrong because we put the wrong wage type in IT267. One more thing is employee is already terminated. When you say cut an additioanl cheque what is the process I need to follow for that. Now I need to pay him back of 1000$ which were additionally withhold on FED fue to the wrong wage type

[Former Member]

Two options---

Option #1--

Enter incorrect wage type with negative on IT 267 and correct wage type on IT267 for total amount paid, this should generate the check with the $1000. However, you indicated even if you used the correct wage type, it is not calculating correctly..Do some research and fix the config for this wage type?

Option #2--

Pay the tax amount overwithheld in a non taxable wage type on IT267. This will give the employee his money. Next, make a IT 221 adjustment to reduce the employee's federal tax withheld, by this amount. Also, in this IT 221 you can create a negative for the incorrect wage type and positive correct wage type..This should fix the system....

[sikindar_a]

then u shd Reverse the doc

and shd delete the persons pay roll data from clusters

any way qaiser has gicen some good solution try it

[Former Member]

My problem has been resolved