How do I change an employee's "reimbursement" that was added to gross wages?
It should not have been added to gross wages or had Social Security and Medicare taxes taken out.
I was able to make a liability adjustment to the SS & MC but when I put in an "adjustment to "Income Subject to Tax"" (like in #7 instructions below) it does not change the wages for that employee on the payroll summary report (which means the W-2 is incorrect as well).
Any ideas on how to really "Adjust" the wages? It is for 2022 and I have not sent in 941's or W-2's yet and time is not my friend right now.
Thanks for any help!
Step 2: Adjust your payroll liabilities
- Go to Employees, then Payroll Taxes and Liabilities.
- Select Adjust Payroll Liabilities.
- In the Date and Effective Date fields, select the last paycheck date of the affected month or quarter.
- In the Adjustment is for: section, select Employee Adjustment to correct your employee’s YTD info. Then select the employee's name. Do this even if the item being adjusted is a company-paid item.
- Under the Item Name column, select the payroll item you want to adjust.
- Enter the Amount of the adjustment.
- If the item is under-withheld, enter a positive amount to increase.
- If the item is over-withheld, enter a negative amount to decrease.
- Enter the amount under the Income Subject to Tax column if you need to make a wage base adjustment.
- Under Memo, enter a note about the adjustment for reference.
- Select Accounts Affected, then OK.
- Select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the year-to-date amounts on your payroll reports.
- Select Affect liability and expense accounts if you want the transaction to reflect in the liability and expense accounts.
- Select OK to close the Affect Accounts window.
- Select Next Adjustment if you have additional employees to enter an adjustment for. Otherwise, select OK to save the changes.
