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How to adjust wages allocated to a state if incorrect state was entered upon payroll set-up for an employee.

A client of mine set-up payroll for an employee, designating the state for withholding and unemployment as VT, as it is a VT based company. Two paychecks were run with this set-up. The selection of VT is incorrect, as the employee lives and worked in Rhode Island. I corrected the employees tax set-up to reflect RI. Two more checks were issued.

 

I was able to adjust the payroll liabilities, so that they all indicate RI, but when I create the W-2, it shows half the wages allocated to VT and the other half to RI. I want all wages to be allocated to RI. How do I adjust this?

 

Thanks for the help!!

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Anonymous
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How to adjust wages allocated to a state if incorrect state was entered upon payroll set-up for an employee.

Hello, @DBH.

 

Allow me to help determine why your W-2 is still showing the wages allocated to Vermont. 

 

Let's try pulling up your payroll summary and check the paychecks that were adjusted. Locate the adjusted paycheck to see if the there's still an amount for the wage base. If there is, open the liability adjustment for this paycheck to include the wage base amount.

 

Now try creating the W-2 again to check if the wages are now allocated to Rhode Island.

 

You can also check out this article for future reference: Entering wage base and tax adjustment.

 

Do keep me posted if this is not the case. I'll be here to help further if the allocated wages for Vermont is still showing. You can also contact our Desktop Payroll Support if ever you need assistance with the steps.

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