You may need to perform a Payroll Tax Adjustment if:
An employee was not allocated to the correct Payroll Tax Code in their transaction when they were paid.
An incorrect Payroll Tax Code was attached to an Employees.
An Employee hasn't been attached to the Payroll Tax Code, but has had transactions processed.
You can use a Payroll Tax Adjustment to move the earnings from one Payroll Tax Code to another for all the transactions that occurred in the month.
Process a Payroll Tax Adjustment
Go to Payroll, Transactions, Adjustments, Payroll Tax State Adjustment.
Select the Employee from the dropdown list
Choose the Month. The grid will populate with a list of Period End Dates and the Transaction Payroll Tax State. If the employee wasn't attached to a Payroll Tax Code, the Transaction Payroll Tax State will be blank.
Choose the New Payroll Tax State.
Click Process. This will move all of the Payroll Period Date values to the New Payroll Tax State for this employee on the Payroll Tax Wages Report for the month.
Click OK.
To run the Payroll Tax Wages Report, go to Payroll, Reports, End of Pay, Payroll Tax Wages Report.
Note: A Payroll Tax State Adjustment is for all processed pays included in the selected month, based on the Belong to Month in the Pay Frequency. You cannot do an Adjustment for just one pay period.