Brenda,

As Jesse correctly pointed out below, the wrong state taxes were calculated and deducted because the EARNINGS were reported to the wrong state. At the end of the quarter, when you go to file your state payroll returns, the system will want to report those wrong state earnings to that state, and your correct state earnings will be underreported, and there will be a mis-match between the earnings reported to each state and the amounts of tax withholding. That's the reason you have to correct the earnings/time entries to have them report to the correct states. The state taxes will calculate correctly, but for each check you will have very likely have to manually adjust the automatically calculated state tax withholding to the amount actually withheld on the check issued with the "wrong" state earnings. If your "time entry view" doesn't show a column for "state" (either in time entry or under Tasks > Enter Checks), you will need to customize a time entry view to show the state column so you can correctly adjust the earnings to the correct state. I would recommend using the "Enter Checks" task for this correction using the actual period end dates and check sequence 2 or 3 for the Net Zero Pay check to make the adjustments. Using "Enter Checks" allows you to confirm that the Net Pay is zero after you've done the in and out entries for both pays and tax withholdings to the correct states.

Brenda,

As Jesse correctly pointed out below, the wrong state taxes were calculated and deducted because the EARNINGS were reported to the wrong state. At the end of the quarter, when you go to file your state payroll returns, the system will want to report those wrong state earnings to that state, and your correct state earnings will be underreported, and there will be a mis-match between the earnings reported to each state and the amounts of tax withholding. That's the reason you have to correct the earnings/time entries to have them report to the correct states. The state taxes will calculate correctly, but for each check you will have very likely have to manually adjust the automatically calculated state tax withholding to the amount actually withheld on the check issued with the "wrong" state earnings. If your "time entry view" doesn't show a column for "state" (either in time entry or under Tasks > Enter Checks), you will need to customize a time entry view to show the state column so you can correctly adjust the earnings to the correct state. I would recommend using the "Enter Checks" task for this correction using the actual period end dates and check sequence 2 or 3 for the Net Zero Pay check to make the adjustments. Using "Enter Checks" allows you to confirm that the Net Pay is zero after you've done the in and out entries for both pays and tax withholdings to the correct states.

If it's ALL wages for one state that need to move to ONE other state, you could setup a reciprocity to move the wages over from one state to another, then run recalculate subject-to.