At Atto, we understand that managing payroll can sometimes lead to errors or the need for adjustments. Here's how to handle payroll corrections and amendments efficiently:
Four Common Reasons for Corrections:
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Employee Overpayment:
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Current Quarter: Overpayments in the current quarter are often resolved in upcoming payrolls or through voids.
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Previous Quarter: For past-quarter overpayments, a void and amendment are necessary.
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Employee Underpayment:
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Current Quarter: Underpayments in the current quarter can be corrected in future payrolls or via off-cycle payments.
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Previous Quarter: Prior-quarter underpayments require corrections and amendments.
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Employee Taxed in the Wrong State:
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Current Quarter: Taxation errors within the current quarter need a void and payroll reissue.
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Previous Quarter: Previous-quarter errors demand a void/correction and amendment.
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Informational Updates:
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Current Quarter: Most informational changes can be directly updated in the current quarter, but some may require communication with agencies.
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Previous Quarter: Changes in prior quarters typically need amendments.
Understanding Voids:
Sometimes, all that's needed to correct a current quarter's mistake is a void. A void in payroll refers to the process of reversing a payroll item or the entire payroll when an error occurs or if payment shouldn't have been made to an employee or company at all.
How to Request a Void?
To request a void, simply create a support ticket with Atto. Ensure you provide the following information for a swift resolution:
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Type of void: Specify if it's due to overpayment, underpayment, taxation error, or an informational correction.
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Timing of the void: Clarify if it relates to the current or previous quarter.
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Employees impacted: Identify the affected employee(s).
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Void amount: State the corrected amount.
When to Use Amendments:
For corrections related to closed quarters in the past, you might need a correction and/or amendment, depending on the type and timing of the error.
Understanding Amendments:
An amendment is a process for correcting payroll errors that are discovered after payroll processing, including post-payment corrections and payroll tax filing errors.
How to Request an Amendment?
To request an amendment, submit a support ticket to Atto. Remember to provide the following essential information:
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Quarter: Specify the quarter in which the error occurred.
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Agencies: Identify the payroll tax agencies affected.
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Employees impacted: Identify the impacted employee(s).
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Amendment amount: State the corrected amount.
Please note that amendments may take longer to process than voids because they often require additional review and approval. Rest assured, we're here to assist you in maintaining accurate payroll records.