Making adjustments

This list explains some of the situations when you must adjust payroll history.

• You used the Add function to add manual payments but did not specify withholding deductions, so the program did not update taxable wages.

• You specified adjustments with a withholding deduction and tax was withheld, but you did not specify taxable wages.

• In a conversion, you did not specify taxable wages for withholding type deductions.

• You issued a manual or bonus payment in which no taxes should have been taken, but did not specify a deduction cycle containing T (Update Taxable Wages Only), so the Payroll application did not update taxable wages.

• You voided payments or specified payments into the Payroll application with an incorrect date.

• You had an employee who changed states during the year and you did not change withholding taxes accordingly.

• A manual payment was made to an employee through the accounts payable department, but never run through the Payroll application.

• Disability payments were made to an employee from a third party and year-to-date wages must be updated.

If the net amount of an adjustment is positive, use Manual Payment (PR80.1) to make the adjustment. Reserve payment numbers in Manual Payment Reservation (PR81.1) that are out of range of your payment numbers (example: 999900, 999901).

If the net amount of an adjustment is zero or negative, use Adjustment (PR82.1) to make the adjustment.

If you make adjustments after you run Payroll Year End Close (PR999), do not let the system date default as the adjustment date. Specify an adjustment date that is in the correct quarter and year for reporting purposes. Then run them in a cycle by themselves through Payroll Register (PR141) and Payroll Close (PR197). Use the same adjustment date on PR197. Do not include these entries in a new year's payroll cycle.

This section contains these information.

Making positive adjustments	Make a positive adjustment to employee pay.
Making positive adjustments and netting to zero	Make a positive adjustment and then net it to zero. This kind of adjustment is most often used for payments from a third party, such as third party sick pay.
Making zero net adjustments	Make an adjustment that results in a net amount of zero.
Making negative adjustments	Make a negative adjustment to employee pay.
Adjustment example	An example of a positive adjustment that is netted to zero.