x Want to participate? Join the group to interact
Options
  • State Not Answered
  • Replies 1 reply
  • Subscribers 47 subscribers
  • Views 941 views
  • Users 0 members are here
Browse Forums
Announcements
51
topics
34
replies
General Discussion
1k
topics
2k
replies
mlman69

Payroll Problem - Too Much Withheld For IRA

Posted By

I am using BusinessWorks Version 2013 Build #56.

I mistakenly withheld too much money on an employee's account.  I can't make general ledger entries to correct this because my W2's and company totals will not be correct.

Also, the IRA money I withheld was not taxed.

Since I withheld too much, I am prevented from depositing the extra money into his IRA account by the plan administrator.

How do I:

  • Refund the extra IRA money I withheld to the employee
  • Tax the refund money
  • Keep the employee's YTD Earning correct in BusinessWorks
  • Keep the employee's IRA contributions correct in BusinessWorks for is W2's, etc.

Any help resolving this matter would be appreciated.

  • 0

    To refund the extra money you would set up an other pay as variable entered on time card. Mark the taxable check boxes opposite of those selected on the original deduction. Do not select the add to gross box.  Assign the other pay to the employee in maintain employees. On the timecard enter the amount of the reimbursement. Process the payroll check as normal.  ( This will pay the employee back and update the taxable pay amounts.)

    Since the Enhanced Tax Reporting uses check detail and that check had the incorrect withholding you will need to manually update the W-2's at the end of the year with the correct IRA contribution amount.

*Community Hub is the new name for Sage City