Adjust an Employee's State Disability Insurance Tax Withholding

In this example, an employee working in New York reports that their State Disability Insurance (SDI) Employee Withheld tax was over-taxed by $10.

You must adjust the tax and refund the money.

Note: If there are also Employer taxes requiring adjustment, you would repeat this process to adjust those balances as well.

This involves multiple steps.

What you need to do	How you do it
Ensure you created the eligibility links for the element	Use the Elements task to verify eligibility links exist for the predefined State Disability Insurance Employee Tax element.
Check the employee balance before you adjust it	Use the Person Results task to confirm the tax's SDI Employee Gross balance results on the person's SOE.
Adjust the balance	Use the Adjust Individual Balances task to correct the SDI Employee Gross balance.
Verify the adjustment	Use the Person Results task to verify you adjusted the SDI Employee Gross balance correctly.
Pay the adjusted monies	Use the Calculate Payroll process to generate the adjustment payments.

For further info, see the following sections.

Create the Eligibility Links

You must ensure you have created the eligibility links for your elements. If not, the element isn't available for adjustment. In this example, you're adjusting the employee's SDI tax. To adjust the SDI Employee value:

1. View the element in the Elements task.

2. Make sure you have established eligibility links for it.

Check the Employee Balance

Before performing the adjustment, verify the employee's current balance value.

1. Start the Person Results task.

2. Search for and select the employee.

3. Navigate to their statement of earnings.

4. Search for and select the SDI Employee Gross balance.

5. View the State Disability Insurance Employee Tax run results to determine the current value and the amount to be adjusted.

Adjust the Balance

To adjust the SDI Employee Gross balance for the employee:

1. Start the Adjust Individual Balances task.

2. Search for and select the employee.

3. Enter the appropriate effective date.

4. Select the State Disability Insurance Employee Tax element.

5. In Adjustment Values, enter the adjustments for the appropriate balances.

   Because you're adjusting a state-level balance to the same state, you must specify New York for the State context. This links the balance adjustment to the state.

6. In Costing and Payment Details, select the following.

   Field name	What you select
   Include adjustment in payment balance	Yes
   Include adjustment in costing process	No

7. Click Submit.

8. Click OK.

Verify the Adjustment

To review the balances after the adjustment:

1. Click Person Results under My Client Groups.

2. Search for and select the employee you adjusted.

3. Click Show Filters. Clear the filters so the search displays all results.

4. Enter the date of the adjustment as the process date.

5. Click OK.

6. Click Search. This displays the details of the processes.

7. Click Adjust Multiple Balances. This displays of the adjustments you made.

8. Confirm the balance adjustment.

Pay the Adjusted Monies

To process the payment and verify the adjustment is correctly refunded:

1. Submit the Calculate Payroll process for the next pay period.

2. Use the Person Results task to verify its results.

3. Submit the Calculate Prepayments process.

   For this example, the refunded amount on the payment is:

   Net Pay + Adjusted Pay = Check Amount

   $1215.89 + $10 = $1225.89

   Note: You don't need to run the payroll process if you're paying only the adjusted value. In this case: