This guide covers how to return an erroneously over-withheld withholding (on) to an employee. The return is handled on the payslip using the additional calculation function to ensure that the Earning payment report is generated correctly.
Returning withholding (on) with an additional calculation
If an employee's pay has been erroneously over-withheld for withholding (on) and you want to return it to the employee, always handle the return on the payslip to ensure that the Earning payment report is generated correctly and the information is up to date.
Handle the return of withholding (on) with an additional calculation. Create an additional calculation for the pay period and from the payslip where the withholding (on) was over-withheld.
You can create an additional calculation by selecting Pay > Payroll > Payslips and pay periods. Select the pay period and click Create additional calculation (see image below, point 1).
In the payroll process phase "Check selected pay criteria" and in the section "Payslip dates", set the dates of the additional calculation for the payment and voucher.
Click the "Save and create payslips" button.
Click the Edit button on the employee's row to correct the information on the additional calculation.
Handle all extra salary type rows on the payslip either by deleting the entire row or zeroing the balance using the Edit icon (pencil pad).
Save the amount of the Withholding (on) to be returned on the salary type row as a negative.
The additional calculation will have the Withholding (on) salary type row with the over-withheld withholding (on) amount as a negative and the To be paid salary type row with the same amount as a positive.
When the payslip information is correct, complete the payslip normally in the payroll process: deliver the payslip to the employee, pay the payslip/send the earning payment report and create the voucher. See more detailed instructions if needed in the Payroll process.
On the Earning payment report, a notice appears: "Withholding tax cannot be greater than the cash pay amount". This does not prevent the sending of the Earning payment report, and you can send the report normally despite the notice.
Considerations in the Earning payment report
The Earning payment report will generate an income type row for the withholding (on) where the amount is negative. For income type 402, a negative amount can be reported. However, note that if other salary type rows with recovery information are handled on the same calculation, the withholding (on) cannot be negative.
Frequently asked questions
How do I return over-withheld withholding (on)?
Handle the return with an additional calculation for the pay period where the error occurred. Save the amount to be returned as a negative on the Withholding (on) salary type row.
Why must the withholding (on) return be done on the payslip?
To ensure that the Earning payment report is generated correctly and the information remains up to date.
The Earning payment report warns "Withholding tax cannot be greater than the cash pay amount". What should I do?
The notice does not prevent the sending of the report. You can send the report normally despite the notice.
Can the withholding (on) be negative on the Earning payment report?
Yes, a negative amount can be reported for income type 402. However, this is not allowed if recovery information is present on the same calculation.
Keywords
Withholding (on), return, additional calculation, Earning payment report, payroll, negative withholding (on), error correction
*This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.
*