PAYROLL-TAX DEDUCTION BALANCING

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Main PageBeginning/End of Year ProceduresPayrollTax Deductions → Tax Deductions Balancing


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Recommendations for Balancing Tax Deductions - Monthly


In Connection with Processing Each Payroll

Verify that all employees have the required tax deductions and they are active

Payroll → Start Tab → Employees w/o Deductions



  • Range on Deduction Type for each required tax deduction separately, for example FEDERAL to FEDERAL, then FICA to FICA, etc. (For most organizations, this report should be run seven (7) separate times. If your organization has multiple EINs, include ranging on Employer ID). Select options should be for Current Employees and Active Deductions. If any employee(s) appear on the report, be sure to add the deduction as an active deduction prior to running Compute Payroll.


Verify that the total number of employees on the Total Select Payroll Report equal the total number of employees for eaech required tax deduction (after the Compute Payroll process), as shown on the Deduction Register Summary

Payroll → Start Tab → Deduction Registers → Summary



  • Select the current Pay ID, then if all required tax deductions are set as Electronic Transfer (for most organizations this would be accurate), turn off Select when Electronic Transfer False to narrow down the deductions on the report. Compare the Total Employees for each tax deduction to the Total All number of employees on the Total Select Payroll Report. For example, if you are paying 537 employees, 537 employees should have FEDERAL, FICA, FICA-M, etc. If the totals do not match, undo Compute Payroll, then add and/or activate the deductions. Re-run Compute Payroll and re-run the Deduction Register Summary.


End of Month after Payrolls have been Processed


Verify that all completed payrolls have been updated

Payroll → Query → by Pay Identification → Job Deduction Pay Masters



  • Range on Calendar Year and turn off the Select when Updated True. If no records selected, then all Payrolls have been updated. If records are selected, determine if this was a completed payroll where checks/direct deposits were issued (not payroll used for testing or correcting amounts). If the payroll was completed, return to the Pay Master to review which steps were not completed and run those steps including the Update Payroll history process.




Run the Federal/State Earnings Comparison

Payroll → Reports → Payroll Tax Reports



  • With very few exceptions (such as State of New York), Federal and State Earnings should be the same. This report can be run to display only employees whose wages are different by checking Display Employee if Different. If any employees appear with a difference, determine if the difference is correct or not. If it is not correct, adjustments would be need to be made.





Run the FICA/Medicare Earnings Comparison

Payroll → Reports → Payroll Tax Reports



  • Unless employees are FICA or Medicare exempt (or employees have reached the FICA wage limit), FICA and Medicare Earnings should be the same. This report can be run to display only employees whose wages are different by checking Display Employee if Different. If any employees appear with a difference, determine if the difference is correct or not. If it is not correct, adjustments would need to be made.




Run the FICA Earnings Calculation

Payroll → Reports → Payroll Tax Reports



  • Enter the applicable Employee and Employer percentages for the year (for 2015, they are both 6.2%) and the FICA Gross Threshold (for 2015, it is $118,500.00). If any employees appear with a difference greater than $0.12 (12 cents), determine if the difference is correct (due to acceptable rounding) or not. For employees with a difference other than rounding, adjustment would need to be made.




Run the Deduction Pay Masters/Calendar Comparison


Payroll → Reports → Payroll Tax Reports



  • Enter the Calendar Year and check Select Tax Deductions Only. The report will list all deductions selected, but only show employees with a difference. If any employees appear with a difference, determine if the difference is correct or not. If it is not correct, adjustments would need to be made.




  • Please contact RDA support if assistance is needed in making adjustments to taxable wages and/or deductions.
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