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  • 1.  Question regarding refund of Employee School Taxes

    Posted 08-04-2020 08:00

    Good morning,
    I need suggestions on how to best handle reversal of Local (School) Taxes, please. One employee had school taxes withheld over 3 quarters in 2020 that shouldn't have, so we need to refund those taxes withheld plus correct the Local Taxable Wages QTD and YTD. I have the KB steps on how to "refund" or reverse taxes on a new check entry but I'm wondering if I should run three different check entries, one dated in each quarter, so that QTD is reflected correctly? And what do I use for the total Earnings Hours if I'm trying to reverse a whole quarter's worth at a time? The total amount of hours recorded for each quarter (i.e. 240)? I've never had to deal with correcting so many posted checks and especially over multiple quarters before. Thanks in advance!




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    Amber Prayfrock, Blytheco
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  • 2.  RE: Question regarding refund of Employee School Taxes

    Posted 08-04-2020 10:45

    Many states that have Local Taxes require a filing of said taxes to be done each Quarter.  If you do that and affect the QTD totals, then you'll need to check and see if you need to amend each of the State's Quarterly Tax reports, assuming the State does have a quarterly filing requirement.

     

    We didn't realize (and should have) that if you reverse a check that has a date in a different quarter, that it does affect that previous quarter's reports.  (Which really messes up the Form 941 when you're just trying to reverse a check out and put a replacement check in, in the same quarter.)

     

     

    Sue Bennett | President

    Bennett/Porter & Associates, Inc.

    P. 503 620 3484 | F. 503 620 2765

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