I ran into an issue today where loan balances were carried forward during year-end processing, even though the loans had been paid off. Part of the issue was that the user didn't turn off the automatic box. However, it appears the rest was caused by Sage. I found the info below on their website. Apparently they added the option to reset balances for standard deductions at year end and defaulted it to Yes for all of them. I think they started it with payroll 2.23. It's important users review that setting for all of their Standard deductions and uncheck it if it shouldn't be checked, before they run year-end. In some cases, the setting is grayed out and has to be changed using DFDM.
Is it February yet?
Reset Balance at Year End incorrectly defaulting to Yes for some deductions
Summary
An option to Reset Balance at Year End was added to all deduction types in PR release 2.22.3. Some deduction codes are incorrectly defaulting to enabling this option/field after installing 2.22.3 or later and converting data.
Cause
Legacy programs/data files have had the Reset Balances box defaulting to Selected, as designed since the product was developed. With recent releases we decided to allow the reset balances to be performed on Standard deductions as well as pension and cafeteria types. Because the box was always set to Y by default, if year end processing was done before reviewing the deductions it cleared out the balances on the existing deductions. This takes knowledge of the payroll person and/or their tax professionals.
Resolution
If deduction balances were incorrectly reset due to the option being incorrectly enabled on the deduction code maintenance window when year end processing was run, there are two options:
1. Restore from a backup prior to running the payroll year end processing. Review the deduction settings in Deduction Code Maintenance per the article attached, and remove the check box for deductions that should not reset balance. Run year end processing again to close the last payroll year and roll into the current.
2. If restoring from backup is not an option, then deduction balances will need to be corrected manually in Employee Maintenance, Deductions tab. Deductions Report or the Check History Report can be used to gather total deduction amount for the prior year and factored into the correct remaining balance (if any) that should have rolled over.
DocLink: How to reset deduction balances at year end
Defect ID
115041
Solution Properties
Solution ID
221924660118139
Last Modified Date
Thu May 04 20:31:14 UTC 2023
Views
49
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Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)
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