Recalculate Taxes on Vouchers

Use the Recalculate Taxes on Vouchers form to recalculate taxes on prior payroll vouchers for tax codes. if

• it was calculated incorrectly earlier OR
• there has been a change in the minimum wage levels, which affects all hourly employees whose current wage matches an amount you designate OR
• there has been a change in the wage level of the individual employee, for example getting a raise or a promotion etc.

 

To access the form, click Payroll. Under Payroll|Action, select Recalculate Taxes on Vouchers.

Note:  You can access historical reports by selecting Recalculate Taxes on Vouchers Report History.

• This only displays historical previews of reports where Update Tax was enabled.
• It will also show if any warnings were generated on the Job Control while processing. The Include SUTA/FUTA Successor Wages field should be Yes for this to work.

To recalculate taxes on vouchers:

1. Select a Tax Type and complete the applicable sections for each from the following options:
• See Recalculate Taxes on Vouchers - Unemployment
• See Recalculate Taxes on Vouchers - Miscellaneous
• See Recalculate Taxes on Vouchers - Medicare
• See Recalculate Taxes on Vouchers - OASDI
2. Click Preview Changes - a job progress window opens. If there are any errors, make the required changes and redo the process.
3. Click Close to close the job progress window, and see the changes in the tax amounts to be made for each employee in the preview pane. Only the first 100 records show up in the preview pane. Click the Download Report link to download this report.
4. Click Cancel if you do not want to recalculate the tax code on the vouchers.
5. Click Update Tax to update the changes to tax calculations on vouchers.

Note:  When the Recalculate Taxes on Vouchers process is run, and an employee has taxable wages with overlimit wages to the SUTA state being processed that have been backed out via tax adjustment before running the utility, the adjustment will continue to occur. Each occurrence will be reported in the processing reports, on-screen process log report, and the Job Control Status report, including the PDF and XLS versions, with the following message stating Employee XXXXXX in company XXXXX has 0.00 Gross Taxable with an Overlimit amount >0.00, resulting in a negative tax amount. Additional adjustment may be required.