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TSA DEDUCTION DIDN'T ROLL DOWN

  • 1.  TSA DEDUCTION DIDN'T ROLL DOWN

    Posted Oct 08, 2019 04:32 PM
    Our benefit year begins on 7/1.  Our legal counsel advised that a previous TSA deduction was to be no longer considered a TSA dedution.  I went to the SETUP PAYROLL DEDUCTION and unchecked the TSA boxes and rolled down the changes.  However the changes didn't roll down.  Evidently once it's TSA it can't be changed.  I can't change anything on each employee card.  That's fine, I can set up a new deduction.

    But for this quarter the deduction was withheld pretax and should have been post tax.  The amounts have already been withheld, I just need to make them taxable to include on an upcoming payroll run.  I can't do a negative deduction because I don't want the amount added back in.  I don't want to offset the deduction with any earning code.  How i correct?

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    Mike Nezzer
    TPCIGA
    Austin TX
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  • 2.  RE: TSA DEDUCTION DIDN'T ROLL DOWN

    TOP CONTRIBUTOR
    Posted Oct 08, 2019 05:48 PM
    HI @Mike Nezzer,

    You're correct, you cannot change the TSA status of a deduction mid-year. You must create a new code if/when the TSA status of a deduction changes mid-year. You can get the taxable wages correct using a Manual Check (Adjustment). Bear in mind that if you need to affect the tax status as it relates to Social Security or Medicare, you will likely need to collect those taxes from the employee. Otherwise, you're going to have 941 issues. Short of a Manual Check (Adjustment), you would have to create a negative deduction for the "old" code and offset it with a new non-taxable deduction code.

    Hope this helps.​

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    Tom Franz, CPP
    (217) 689-4658 - tfranz@integrity-data.com
    Director of Client Services
    Integrity Data
    Lincoln IL
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    Conference-GPUG_200x200


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