Judy Strother Product Support Specialist I Product Support Specialist I 3 years with MasterTax 10 years with ADP Started with 1 Support promoted to 2support then promoted to her current role Loves to go Mudding ID: 657072
Download Presentation The PPT/PDF document "Correcting Variances Presenter" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Correcting VariancesSlide2
Presenter
Judy Strother
Product Support Specialist ISlide3
Product Support Specialist I
3 years with MasterTax; 10 years with ADP
Started with 1 Support, promoted to 2support, then promoted to her current role
Loves to go Mudding
Judy Strother
PresenterSlide4
Moderator and Q &
A
Eddie Robison
Associate Client Support ConsultantSlide5
Associate Client Support Consultant
1.5 years with MasterTax
Strong Technical knowledge base
Avid Board, Card, Video and RP Gamer
Eddie Robison
Moderator and Q&ASlide6
How to
R
ead the QTD Analysis
Common MistakesWhen a Liability is Incorrect
Need to make a payment
Need to enter the correction as a prepaidWhen Quarter Reconciliation Data is Incorrect
Need to adjust taxable wagesNeed to update a rateNeed to update the QTD tax
When Both Quarter Reconciliation Data and Liability are incorrect
Correcting Variances Training Agenda Slide7
How to
R
ead the QTD AnalysisSlide8
How to
R
ead the QTD Analysis (cont.)Slide9
How to Read the QTD Analysis (cont.)Slide10
How to Read the QTD Analysis (cont.)Slide11
How to Read the QTD Analysis (cont.)Slide12
First you need to determine if you need to make a payment, create a credit or only fix the liability.
If you need to make a payment or create a credit then you will need to generate a manual Payroll Tax Post.
If you only need to fix the liability because payment was made previously, then you will need to add it as a prepaid deposit.
When a
L
iability is IncorrectSlide13
How to correct the liability when
either a payment or credit needs to be created and the Quarter reconciliation data is correct. The next step will depend on how you respond to the questions below:
Are you okay with your Deposit
H
istory
Report reflecting the payment or credit as a variance versus a liability or would you prefer to see only liabilities on the Deposit History Report?If you are okay with showing the liability as variance, you will want to leave it as is and post the variance that displays on the QTD Detail Analysis.
If you are not okay with seeing variances then you will need to complete a manual payroll tax post.
When a
L
iability
is I
ncorrectSlide14
In reviewing the QTD Detail A
nalysis we can see a variance that will create a payment for $87.00 for AZ0000-001. Next we compare MasterTax figures with our payroll software, and come to the conclusion that a liability was not entered. So how do we remove the variance and create a payment? This would be Manual Payroll
T
ax Post (see next pages).
When a Liability
is Incorrect: and you need to make a payment Slide15
How to complete a Manual Payroll Tax Post for $87.00. See steps 1-9
When a Liability
is
Incorrect:
and
you need to make a payment (cont.) Slide16
When a L
iability
is
Incorrect: and you need to make a
payment (cont.)
After posting the Payroll Tax Post a Recalculation is needed. Path for Reconciliation Utility: (Utilities>Quarter End>Reconciliation Utilities). Slide17
When a L
iability
is
Incorrect: and you need to make a payment
(cont.)
To create a credit instead of payment all steps are the same except,
instead of entering a positive amount for the payroll tax add you would enter it as a negative amount.
Confirm the QTD Detail Analysis is correct. Variance should now
show zero.Slide18
Since the QTD information is correct, we know we need to correct either the liability or prepaid column. Next we’ll compare the payroll software figures to MasterTax data.
We can now identify that the prepaid
column is
incorrect because a payment that was previously paid by another payroll service provider was never reported. So how do we correct the variance and avoid making a payment? This would be a prepaid (see next pages).
When a
Liability is Incorrect: and
you need to enter the correction as a prepaidSlide19
How to enter in a prepaid for $87.00. See steps 1-6
1. Utilities>Payment
& Monthly Wage>Prepaid
Deposit
When a
Liability is Incorrect: and
you need to enter the correction as a prepaid (cont.)
3. Select and choose the tax code from the list.Slide20
When a
L
iability
is Incorrect:
and
you need to enter the correction as a prepaid (cont.)
6. Verify QTD Detail Analysis looks correct variance should be zero.Slide21
In this scenario I know my liability and prepaid are correct. However my QTD data is not correct. You will need to determine the following:
First, determine which tax code has the discrepancy; is it Unemployment or Withholding?
If the discrepancy is with Unemployment Tax it could be caused by two things: either the QTD Taxable or the State Unemployment Rate is incorrect or in some cases both are incorrect.
If the Discrepancy is with the State Withholding then you would look to update QTD Tax field in most cases.
When
Quarter Reconciliation Data is
IncorrectSlide22
In this example the state unemployment is not correct; the QTD taxable wages should be 20,000 not 10,000. How do I correct this? See Steps 1-5
When
Quarter Reconciliation Data is
IncorrectSlide23
1. Process>Transaction>Quarterly Reconciliation>Fill in required
fields>Search
3
. Next
you will need to adjust both the Employee/Reconciliation taxable wages>Save.
4. Post the Quarterly Recon PostWhen Quarter Reconciliation Data is I
ncorrect: and you need to adjust taxable wagesSlide24
5. Review the QTD Detail Analysis
When
Quarter Reconciliation Data is
Incorrect: and you need to
adjust
taxable wages (cont.)Slide25
When
Quarter Reconciliation Data is
Incorrect:
and you need to
update a rateSlide26
In this example the state unemployment rate is not
correct.
T
he QTD taxable wages of 10,000 is correct, however my rate should be 4%. How do I correct the rate? See Steps 1-41. Setup>Company & Tax>Company View>Tax tab>Rate>
When
Quarter Reconciliation Data is
Incorrect: and you need to update a rate (cont.)Slide27
3. After saving the new rate you will to need to complete a
Recalculation: (Utilities>Quarter
End>Reconciliation Utilities).
4. Review a QTD Detail Analysis for revision
When Quarter Reconciliation Data is Incorrect:
and you need to update a rate (cont.)Slide28
In this example the state withholding is not correct the QTD t
ax should be 113 not 200. How
do I correct this
? See steps 1-5
When
Quarter Reconciliation Data is Incorrect: and you need to update the QTD taxSlide29
1. Process>Transaction>Quarterly Reconciliation>Fill in required
fields>Search
2. Only
reopen the tax code affected3. Adjust the QTD Tax Column with the correct amount
When
Quarter Reconciliation Data is Incorrect: and you need to update the
QTD tax (cont.)Slide30
5. After posting the Quarterly Recon you will want to verify the QTD
Detail Analysis reflects any changes
When
Quarter Reconciliation Data is
Incorrect: and you need to update the QTD tax (cont.)Slide31
As you may have guessed the process is the same except you would have to correct both the Liability and Quarter Reconciliation Data.
1. First, correct the Quarter Reconciliation Data and then run an updated QTD Detail Analysis.
2. Next determine if you are okay
with your Deposit History Report reflecting the payment or credit as a variance versus a liability or would you prefer to see no variances on the Deposit History Report?
3. If you are okay with variances showing on Deposit History Report post the variance that displays on the QTD Detail Analysis as is.
When
both Quarter Reconciliation Data and Liability are I
ncorrectSlide32
4. If you are not okay with variances displaying on the deposit history report then you will need to either enter in a prepaid or create a manual payroll tax post. (see next steps 5-8).
5. If
you need to make a payment or credit then you will need to create a manual Payroll Tax Post.
6. If you need
to
fix only the liability because payment was made previously, then you will need to add as a prepaid deposit.
7. Once all data has been updated, a recalculation will need to be performed.8. Last, create a new QTD Detail Analysis report, confirm all changes are correct and no variances appear.
When both Quarter Reconciliation Data and Liability
are
I
ncorrectSlide33
Different Types of VariancesSlide34
Questions and AnswersSlide35
Thank you from the MasterTax Team!Slide36
Support Contact Information
Phone:
1-888-237-8585
Email:
MasterTaxSupport@adp.com
Director, Client Service:
Jared Casper jared.casper@adp.comTeam Leader: Amber Gorospe amber.gorospe@adp.comSlide37
This communication is intended solely for the use of the individual to whom it is addressed and may contain information that is privileged, confidential or otherwise exempt from disclosure. The information provided in this communication is for informational purposes only and not for the purpose of providing legal, accounting, or tax advice. The information and services MasterTax, LLC, and ADP, Inc. provide should not be deemed a substitute for the advice of any such professional. Such information is by nature subject to revision and may not be the most current information available. Copyright © 2017 MasterTax, LLC.
Legal Disclaimer