Adjustments to Historical Information
You enter an interim payment to adjust historical information when you need to void a specific amount of an employee's payment, but not the entire payment. For example, suppose that an employee is set up to receive 500 USD of his payment in the form of a check and the remainder of the payment in an automatic deposit. If the check is lost, but the automatic deposit occurs as usual, you can use the adjustment feature to manually void the part of the payment that was lost without affecting the automatic deposit. To create the manual void, you enter an adjustment interim payment for negative 500 USD. To issue a replacement check, you create a standard interim payment.
When you create an adjustment interim payment, the system automatically specifies that the interim is a manual interim. Therefore, the system does not automatically create a printed payment for adjustments.
Additional circumstances exist in which you might need to adjust employee payroll history information. Some examples of such circumstances are:
An employee was taxed incorrectly, so you need to adjust the tax amounts.
An employee's personal information changed, and the payroll office was not notified.
An employee transferred from one division or company to another for which year-to-date limits need to be considered in payment calculations and government reporting.
An employee was overpaid and then paid the company back outside of the regular payroll process.
The amount that the employee paid back is the net overpayment of earnings, less deductions and taxes. For the adjustment interim, you enter negative amounts for:
Time entry information.
Gross wages for each applicable tax type.
Excludable wages for each applicable tax type.
Excess wages for each applicable tax type.
DBAs.
Taxes.
An employee was set up in one state for work and residence, but actually works in one state and lives in another.
Therefore, you need to transfer taxable wages from one state to another. You must enter positive amounts for the state to which you are transferring the wages, and negative amounts for the state from which you are transferring the wages. You need to manually enter these amounts for:
Time entry information.
Gross wages for each applicable tax type.
Excludable wages for each applicable tax type.
Excess wages for each applicable tax type.
DBAs.
A Canadian employee exceeded the contribution limit for employee insurance (EI), Canadian pension plan (CPP), or Quebec pension plan (QPP).
Employees in Canada contribute to EI, CPP, and QPP, which have various contribution limits. You need to refund the overpayment of taxes and decrease or increase the excess and excludable amount, without altering the gross amount. You must enter positive or negative amounts for:
EI.
CPP or QPP.
Excess wages for each applicable tax type.
Excludable wages for each applicable tax type.
An employee, who is on a leave of absence and does not receive a paycheck, sent in a payment for a loan or benefit deduction that is normally withheld from his or her paycheck.
You need to update payroll DBA and tax history to reflect the payment. You must enter amounts for:
DBA.
Gross wages for each applicable tax type, if the DBA is pretax.
Excess wages for each applicable tax type, if the DBA is pretax.
Excludable wages for each applicable tax type, if the DBA is pretax.