How to Adjust Employee Federal Tax Using Balance Adjustment Task

In this example, you correct the employee's Federal Tax Withheld tax that's over-taxed by $10. You adjust the employee's Federal Tax Withheld tax and refund it to the employee.

As a Payroll Administrator, these are the corrective actions you must complete:

1. Ensure the eligibility links for the element exists.

2. View the employee balances prior to the adjustment.

3. Adjust the balances.

4. Verify the balance results after the adjustment

5. Correct the registration number on the element

Ensure Element Eligibility Link

Ensure that you have created the eligibility links for your elements. If not, the element is not available for adjustment. In this example, you are adjusting the Employee Federal Tax. To adjust the value, you must ensure you have established eligibility links to the Employee Federal Tax element.

1. After you create the element eligibility link, complete these tasks to correct the registration number.

View the Employee Balances

Prior to performing the adjustment, verify the employee's current balance values.

1. Navigate to the Person Process Results task under Payroll in My Client Groups on the Home pag and search for the employee.

2. Select the employee details to view their SOE.

3. Navigate to the run results from the SOE.

4. In the Run Results section, search for and select Federal Income Tax balance group and click Search.

5. In the search results, select the Federal Tax Withheld balance.

Adjust the Balances

You can adjust the balances for the employee directly from the Balance view for Federal Tax Withheld by using the Balance Adjustments task. Here's the list of steps to adjust the balance

1. Under Search Results, select the row of the Federal Tax Withheld balance to adjust and select Adjust Balances from the Actions menu.

2. Within the Balance Adjustments page, select the Federal Taxes element from the Element Name list of values.

3. Enter the appropriate balance adjustments in the Adjustment Values section.

   In this example, we are adjusting to the same Province and Reporting Type, so enter the same value for both contexts, otherwise the balance adjustment will not be linked to the province and reporting type. This will cause the adjustment to not show correctly in the application.

4. Complete the following under the Costing and Payment Details section.

   • Select No for Include adjustment in payment balances so that the balances are refunded or deducted in the next payroll run.

   • Select No for Include adjustment in costing process so that the costing for the individual balances are done as soon as the balance adjustments are processed.

5. Click Submit

6. Click OK.

Verify the Run Results

To review the run results after each adjustment:

1. Navigate to the Person Process Results task under Payroll in My Client Groups on the Home page.

2. Select Balance Adjustment and enter the additional required search criteria, and click Search.

3. Select the employee's name in the Search Results section.

4. Navigate to the run results from the SOE and select the Federal Income Tax balance group.

5. Click Search and confirm the adjustment value.

   To verify that the balance is correct and the adjustment is refunded in the employees next paymen/ submit the payroll for the next pay period and verify the run results.