How to Make Balance Adjustments for Incorrect State Tax Jurisdiction

Use the Adjust Individual Balances quick action under the My Client Groups tab on your home page to make a balance adjustment for an employee.

Before you start

To illustrate how you can make a balance adjustment for an employee, let’s look at an example to correct an employee’s incorrect state tax jurisdiction.

For example, Patricia Smith, is employed at Illinois, but, you have erroneously set her work location as California. This results in deducting the wrong state tax for Patricia, instead of the correct Illinois sales tax. This error could impact multiple balances, as several balances are tagged by the state tax jurisdiction.

As a Payroll Administrator, you must:

  1. Contact an HR Specialist to access Patricia's employment records and change the work place from California to Illinois.
  2. Use the Elements task to ensure element eligibility links exist for all elements impacted by the tax jurisdiction.
  3. Use the Adjust Individual Balances task to make the balance adjustments for the change of work location.
Here's how you perform the balance adjustment.
  1. On the Home page, click Adjust Individual Balances under My Client Groups.

  2. Enter the employee's name in the Search window.

  3. Enter 3/31/2021 as the effective date for a quarter end correction.

  4. In the Adjust Values section, expand Adjustment Element .

    Confirm it lists all the elements relevant for the employee. If an element isn't included here, you must set up the element eligibility and ensure that the employee meets the eligibility requirements.

  5. Select Residence State Income Tax.

  6. In the Adjustment Values section, expand State and select CA for California state.

  7. Enter -9318.72 as gross.

  8. Enter -9318.72 as subject withholdable.

  9. Enter -9318.72 as the reduced subject withholdable.

  10. Enter -641.38 as tax calculated.

  11. Under the Costing and Payment Details section, select the following:

    • If you want the balances to be refunded or deducted in the next payroll run, select Yes for Include adjustment in payment balances.

    • If you want costing for the individual balances to be done as soon as the balance adjustments are processed, select Yesfor Include adjustment in costing process.

  12. Click Submit.

  13. Click OK.

    Repeat the same steps to enter the positive balance details for Illinois state for the employee.

After you submit the balance adjustments, the application uses the Adjust Multiple Balances flow to submit the changes for the employee. It automatically generates a name for the flow that includes the name of the employee and the date of the balance adjustment. For this example, it generates 'Balance_Adjustment_Patricia_Smith_2022_03_31’ as the flow name.

View and Verify the Balance Adjustment

You can view the adjustment details using any of these tasks:

  • Use the View Flows task, search for the submitted balance adjustment flow, and view the flow results.

  • Use the Process Results Summary task, enter a date, and search for the Adjust Balances flow, click on the flow name, and select the person to view the details.

  • Use the Person Results task, search for the person, and view the results details.

Here's holw you can use the Person Results task to view and verify the balance adjustment for Patricia.

  1. Click Person Results under My Client Groups.

  2. Search for and select Patricia Smith.

  3. Click Show Filters.

  4. All the three payroll Activities filter options are selected by default. To view all results, deselect the three filter options, or click Clear.

  5. Enter 3/31/21 as process date.

  6. Click OK.

  7. Click Search.You can see the details of the processes as per the selected filter options.
  8. Click the Adjust Multiple Balances flow to view details of the adjustments you made.