Making Balance Adjustments for Incorrect State Tax Jurisdictions

In this example, you have found an employee with the wrong state jurisdiction configuration. Because of this, their state income taxes (SIT) were deducted for California instead of New York.

1. Start on the Home page.

   To fix the balances for an employee that was coded for the wrong tax jurisdiction, first go to the Payroll work area.

2. Click My Client Groups.

3. Click Payroll.

4. Click Adjust Individual Balances.

5. Search for and select Patricia Smith.

   Verify their balance values.

6. In Adjustment Values, click Add.

   In this example, when Patricia started, she was entered in the system and mistakenly set to California as her work state. She actually works in Illinois. We'll make the adjustment, so her correct state income tax is reflected accurately.

7. Click Adjustment Element, enter Residence state, and select Residence State Income Tax.

   If you don't see the relevant elements here, go back and make sure the element eligibility is set up and the employee meets the eligibility requirements.

8. Click State, and select CA.

   Next, enter the appropriate balance adjustments to negate the entry to the California jurisdiction.

9. In Gross, enter -9318.72.

10. In Subject Withholdable, enter -9318.72.

11. In Reduced Subject Withholdable, enter -9318.72.

12. In Tax Calculated, enter -641.38.

13. Click Save.

14. Click Submit.

15. Click Refresh.

16. Click Adjust Multiple Balances.

    Now you can verify the adjustment you just submitted.

17. Click Smith, Patricia.

    Here are the adjustment details.

    Then repeat the process to perform another adjustment with positive values to the new jurisdiction, which in this case is Illinois.

18. Click Back.

19. Click Back.

20. Click Adjust Individual Balances.

21. Search for and select Patricia Smith.

22. In Adjustment Values, click Add.

23. Click Adjustment Element, and select Residence State Income Tax.

24. In Adjustment Values, click Add.

25. For State, click the drop-down list and select IL.

26. In Gross, enter 9318.72.

27. In Subject Withholdable, enter 9318.72.

28. In Reduced Subject Withholdable, enter 9318.72.

29. In Tax Calculated, enter 641.38.

30. Click Save.

31. Click Submit.

32. Click Refresh.

33. Click Adjust Multiple Balances.

34. Click Actions.

35. Click Back.

36. Click Back.

37. Click Person Results.

38. Search for and select Patricia Smith.

39. Click the ellipsis for the first result, and select Balance Results.

40. Click Back.

41. Click the ellipsis for the second result, and select Balance Results.

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