Overpaid Tax-Adjust/payback amount (/401 withholding tax YTD)

[former_member231736]

Hi experts,

For one of our employees, we deducted the /401 withholding fed tax excessively $1000 (and now we would like to return the payment to him through check.)

My criteria is to return his payment and the /401 withholding tax should show up as -900 and also get deducted from the YTD.

(I tried using IT221 ADJT but negative amount not permitted here; tried IT0015 but here /401 technical wage type is not permitted.

Tried IT221 -manual payment and put /401 with $1000; but post running simulation the $1000 is deducted from gross but getting added to YTD.)

I believe this is a common issue in every organization; please help us in resolving this.

Aries.

[former_member235056 · Accepted solution]

Hi Aries,

You should be able to use IT0221 subtype ADJT for /401 FED with $900- amount.

You can also try IT0221 subtype YANA for /401 FED for same.

Please also consider adding taxable gross and subject earning /601, /301 and /701 in case they also needs to be adjusted for respective wage type that caused the issue with this tax.

Thanks,

Ameet

[former_member231736 · Accepted solution]

I tried all of these Ameet.

the amount should not get added to YTD figures. for instance if the /401 withholding tax YTD is 50,000 for previous period, now if I perform IT221 with -900 using any subtype that -900 should not get added to 50,000. the figure should show up 50,000-900= 49,100 in the YTD. Hope I am clear.

Please let me know.

Aries

[AshishBhati · Accepted solution]

Hi Aries,

I am sure you did tried the ADJT subtype. May we know what you getting in your UTXCE or UTPRI function processing for 01 Tax category. Hope it should be like

Thanks,

Ashish

[former_member231736 · Accepted solution]

Hi Ashish,

Thanks for responding on this.

Now, I tried IT221 with YANA with /401 and amount -900. ran the off-cycle and it got deducted from the YTD. perfect.

But, I need the net pay to be displayed in the log so that we can process his check.

Aries.

[former_member235056 · Accepted solution]

Hi Aries,

IT0221 is only used to to adjustments.

Can you summarize what is the process or requirementn.

You may further need to have an off cycle run done may be as additional payment to enter a wage type that will go to gross pay or rather net payments/deductions as payment and as non-taxable component which will output what is input in system on IT0267.

You can name it as Net Payment.

This is only if you are wanting to have employee just paid out net pay now.

Hope this helps.

Thanks,

Ameet

[former_member231736 · Accepted solution]

Hi Ameet,

The requirement is an excessive amount $900 got deducted from /401 withholding tax in last py period. Now, we have to adjust the ytd figure and at the same time pay him back.

Iam able to adjust the ytd using IT221 Yana.Now, please let me know how to pay back 900 as net pay.

Aries.

[former_member235056 · Accepted solution]

Hi Aries,

Go ahead and have employee paid with the amount using IT0267 using nontaxable wage type as Net payment Adjustment.

Whatever is paid under this wage type will be same as what is entered in IT0267.

For /401 FED you could have also tried using IT0210 additional withholding by entering $900- and would have run retro payroll to refund tax.

Thanks,

Ameet

[former_member231736 · Accepted solution]

Hi Ameet,

I tried using IT234 by maintaining the negative amount and it is working fine in our quality system. I tried the same in our prod but it is not giving the expected results.

This is due to a big amount sitting in /N01. So, could you please suggest us clear steps on how to clear this amount, impact of deleting this amount ? in order to go ahead with IT234?

Regards,

Aries.

[former_member235056 · Accepted solution]

Hi Aries,

I would say you can adjust /N01 on IT0221 first i.e. if amount in /N01 is $700 then place /N01 as $700- on IT0221 if at all this is irrelevant tax as it is tax that is not taken and if not correct then should be adjusted to be removed, if required.

Also, I did not mention to use IT0234 but did mention to use IT0210 additional withholding amount field entry for same.

Did you try this out?

But real question now was you need only Net payout which you can have a wage type entered on IT0267 with nontaxable payment wage type just hitting gross or net payments/deduction directy to net pay on which no deductions or taxes are to be calculated i.e. straight input to output.

Thanks,

Ameet

[former_member231736 · Accepted solution]

Hi Ameet,

I tried your scenario.

Maintained IT221 (subtype YANA or ADJT)+FED+/N01+negative amount and also /401+negative amount.

Got a warning message when trying to save the record "no entry in the table for /n01 in T511 for the date specified"

I checked the 'wage type characteristics table T511" and see there is no entry there. I even tried with different dates but no luck.

Could you please help me on how to tackle this?

Aries.

[former_member231736 · Accepted solution]

Hi Ameet,

I am closing  this thread.

We have cleared the /N01. IT234 is deleted on previous payperiod. so, we maintained that record again with start and end dates of that previous payperiod. This way the /N01 got cleared.

Later created a IT234 record with negative amount to adjust YTD and payback.

Issue resolved