EPY: How To Post Changes in Payroll From A Prior Period? (Doc ID 2856883.1)

Last updated on APRIL 15, 2024

Applies to:

Goal

If there are changed payroll activities for a prior period (ie. refunding HSA), how should we be posting those correcting entries in the HCM system?

For example:

HR directs Payroll to refund employee’s prior year contributions to an HSA plan because the employee failed to complete the process to open the individual account at the receiving bank. The W-2 adjustments include decreasing contributions reported in Box 12W, increasing federal, social security, and Medicare wages (Boxes 1, 3, 5), and increasing social security and Medicare taxes (Boxes 4 and 6). Currently, we use the W-2 Adjustments>Create W-2c US/Territories feature in Peoplesoft to create the W-2c record and post it online for access via Employee Self Service. Supporting documentation for the W-2c is maintained outside of the HCM system.

The employee’s prior year payroll records (deductions, taxable wages, tax withholding) are not updated to reflect the HSA refund and resulting changes to taxable gross and tax withholding in the system.


 

Solution

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