Understanding Interim Payment Tax Overrides
When you enter interim payments, you can override employee tax information so that the interim payment includes the amounts that you want to appear on the payment. You can override tax information on the Interim Entry form, or you can access the employee's current tax exemption and credit information from the Interim Workbench and override that information to calculate the interim payment.
Note: When you override tax information
from the Interims Workbench, the employee's permanent tax information does not
change. The overridden information is used only for the calculation of the interim
payment that you are entering for the employee.Also, if you are using the
batch method to process interim payments, you must enter tax overrides using the Tax
Overrides option from the Form menu, because the tax tabs on the Interim Entry form
are disabled for batch processing.
Note: You cannot override state
unemployment insurance rates on an interim payment. If you want the state
unemployment insurance rate (tax type C) to calculate at a rate different than the
Federal rate, you must set up records for tax type C at the state level using the
Unemployment Insurance Rate Revisions program (P079221). However, if you calculated
state unemployment insurance on past employee payments using the wrong rate, you can
enter adjustment interim payments to correct those amounts.
To enter tax overrides, you must first complete the initial steps to enter an interim payment.