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Tax Forms Have Incorrect Figures

Overview

If your tax forms or reports show incorrect figures, follow this systematic troubleshooting process to isolate and correct the problem.

Solution

Work through these steps in order. Each step helps you narrow down the source of the error.

Step 1: Download the latest version

The error you're experiencing may have already been fixed in a recent update.

  1. Go to Utilities > Download the Latest Version of ProPay on the ProPay Main Menu.
  2. Install the update.
  3. Regenerate your tax forms.
  4. Check if the figures are now correct.

If the problem is resolved, you're done. If not, continue to Step 2.

Step 2: Recalculate taxable wages

Run the taxable wages integrity check to detect calculation errors.

  1. Go to Client Functions > Miscellaneous > File Integrity on the ProPay Main Menu.
  2. Select the company with the problem.
  3. Click Re-Calc Taxable Wages.
  4. If ProPay detects problems, it will generate a report.
  5. Print the report and follow the instructions provided.

If the report detects and fixes the problem, you're done. If not, continue to Step 3.

Step 3: Review taxable wages reports

Print detailed reports to identify which wages are incorrect.

Print the Employee Summary Taxable Wages Report:

  1. Go to the Reports menu on the Payroll Main Menu.
  2. Print the Employee Summary Taxable Wages Report.
  3. Go to the last page and review the following totals:
Report Field Appears On
GROSS Form 940
F/W SAL Form 941, W-2 (Federal wages)
FICA SAL Form 941, W-2 (FICA wages)
Medicare SAL Form 941, W-2 (Medicare wages)
STATE SAL State withholding form, W-2
SUI Gross State UI form (total wages)
SUI Txbl State UI form (taxable wages)
FUTA SAL Form 940 (FUTA taxable wages)

These report totals appear on your tax forms. If you can correct the totals in this report, it will correct the tax forms.

Identify problem employees:

  1. Review each employee's wages in the report.
  2. Identify which employee(s) have incorrect wages.
  3. Note the specific wage types that are wrong (e.g., FICA SAL, STATE SAL).

Print the Employee Detail Earnings Report:

For each employee with incorrect wages:

  1. Go to the Reports menu on the Payroll Main Menu.
  2. Print the Employee Detail Earnings Report for that employee.
  3. Review pay types and pre-tax deductions.
  4. Identify the specific pay item causing the discrepancy.

Step 4: Review employer setup screens

Check company-level taxability settings.

Review Deductions/Income setup:

  1. Go to Employer > Deductions Setup on the Payroll Main Menu.
  2. Check which boxes are marked for tax exemptions.
  3. Verify settings are correct for your requirements.

Review Other Pay Rates setup:

  1. Go to Employer > Other Pay Rates Setup on the Payroll Main Menu.
  2. Look for any (+) or (--) signs under the SUI Gross column.
  3. These signs add or subtract fringe benefits or miscellaneous income/deduction items to gross or taxable wages.
  4. Verify these adjustments are intentional and correct.

Step 5: Review employee setup screens

Check employee-level taxability settings.

  1. Go to Employees > Change Employee on the Payroll Main Menu.
  2. Select the employee with incorrect wages.
  3. Go to the Tax Exemptions section for that employee.
  4. Check which boxes are marked.
  5. Verify exemptions are correct for this employee.

Common employee-level settings that affect taxable wages:

  • Federal withholding exempt
  • FICA exempt
  • Medicare exempt
  • State withholding exempt
  • SUI exempt
  • FUTA exempt

Step 6: Correct the errors

Once you've identified the source of the problem, choose the appropriate correction method:

Method A: Delete and re-enter checks (loses audit trail)

  1. Go to Employer > Edit Database on the Payroll Main Menu.
  2. Delete the erroneously calculated checks.
  3. Re-enter them with correct settings.

Method B: Void and re-enter (preserves audit trail)

  1. VOID the incorrect checks by entering them in negative amounts.
  2. Re-enter them correctly with positive amounts.
  3. This creates a full audit trail of the correction.

Method C: Let ProPay calculate adjustments

  1. Use the Re-Calc Taxable Wages feature (Step 2 above).
  2. Allow ProPay to generate and post adjusting entries.

Method D: Manual database edit (advanced users only)

  1. Go to Employer > Edit Database on the Payroll Main Menu.
  2. Manually edit the incorrect payroll records.
  3. Caution: This is dangerous if you're not familiar with database editing.

Understanding Wage Calculations

Different wage types serve different purposes:

  • GROSS - Total wages paid, used for Form 940
  • F/W SAL - Wages subject to federal withholding (after pre-tax deductions)
  • FICA SAL - Wages subject to Social Security tax (limited to the current year's Social Security wage base; see IRS Publication 15)
  • Medicare SAL - Wages subject to Medicare tax (no limit)
  • STATE SAL - Wages subject to state withholding (varies by state)
  • SUI Gross - Total wages for unemployment purposes
  • SUI Txbl - Taxable wages under state unemployment (usually limited to first $7,000-$52,000 depending on state)
  • FUTA SAL - Wages subject to federal unemployment tax (first $7,000 per employee)

Reporting Suspected Software Bugs

If you've completed all steps and still believe there's a software error:

  1. Try to recreate the problem in a test scenario.
  2. Document the exact steps to reproduce the error.
  3. Submit your client's files to Paysoft support.
  4. Include specific instructions on how to recreate the problem.

If Paysoft can recreate the issue, they will fix it and post an update.

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