Back out SDI Deduction

[Sts_PP]

Hi - For the first quarter I was deducting SDI from my employees. I realized at the end of the first quarter that since we are a church our employees are excluded from unemployment compensation. Is there an easy way to reverse the deductions in pay window or do i have to go into each transaction and change the SDI amount to 0? My biggest concern is that the year end data correctly shows 0 for SDI withheld.

I corrected the problem going forward by setting the SUTA/FUTA/SDI percentages to 0%.

Thank you.

[Paul Mayer]

There really is no easy way as it has been deducted from the pay checks already. By setting that to zero changes the transaction and can cause an unbalance of the transaction.

This FAQ shows how editing can mess with reports and such.

http://zpay.com/PayWindowTutorials/BreakingPayWindow/index.html

I would leave it and reimburse the employees.

[Sts_PP]

Okay so is your suggestion that I would just write them a check for the amount withheld and not do anything in pay window?

If I do that it will just show up on that end of year w-2 right?

[Paul Mayer]

Here's a test for you to do. Mark that employee as Exempt from SDI and then print preview the W2 Forms as I believe being marked as Exempt it will not print it.

[Sts_PP]

Sorry for the slow reply, had to find time to try this out. Marking an Employee as Exempt and then running a print preview of the W2 still shows SDI.


Here's a test for you to do. Mark that employee as Exempt from SDI and then print preview the W2 Forms as I believe being marked as Exempt it will not print it.

[Paul Mayer]

Then there is no work around since it was already deducted from their pay checks.

Sorry