Reverse an H/R Taxable Benefit

This section explains how you can reverse a Human Resources taxable benefit by setting the Include in Gross Set field to Yes and Include in Net field to No.

The correction to this type of entry will require processing two types of checks.

• One check will reverse the benefit amount with the tax consideration.

• The 2nd check will actually return the tax amount to the employee.

The first step is to create a “dummy” check in the check reconciliation file.

To reverse an H/R taxable benefit

1. On the Main Menu, click Payroll, select File Maintenance, and then click Enter Checks - Payroll.

Check Reconciliation Selection screen

2. Select or enter an Account Number and a Check Number.

3. Click OK.

Check Reconciliation Detail screen

4. Create a check in the file with zeroes in the Check Amount field.

5. Click OK to save changes and return to the "Check Reconciliation Maintenance - Selection screen" .

6. On the Main Menu, click Payroll, select Entry, and then click Payroll Entry.

Payroll Entry Selection screen

7. Populate the fields as follows:

a. Process a net zero manual void check.

b. In the Screen Selection field, select Regular, and then click OK.

The Payroll Entry - Regular screen will display.

c. Click the Exceptions tab.

Payroll Entry Exceptions screen

8. Populate the fields as follows:

a. In the Adjustments area, enter the appropriate adjustment Type and dollar Amount (the amount should be positive).

b. Enter the appropriate Code (other deduction code) and corresponding negative amount for the tax consideration, and then click Control.

9. On the Payroll Entry Control screen, enter the check information and appropriate tax values to create a net zero check, and then click OK.

10. On the Main Menu, click Payroll, select Processing, and then run the Payroll Proof, Payroll Register, Payroll Print Checks, and Payroll Update/Reports features with the manual void check.

11. Pay back the tax difference to the employee.

This can be done by processing an OD code (other deductions) with a negative amount. This negative deduction can be processed separately as a payoff check or through normal payroll processing.