RDA

Refunding Payroll Deductions To Employees

Weeping Redbud and BaileyRefunding deductions to employees? How do you do this in OpenRDA and what do you need to know about the deduction? The easiest method, of course, is to handle this with the next payroll using the correcting amount field in the employee’s deduction master. ย The reason this is the easiest is that the taxable earnings are automatically adjusted (i.e., increased) if the deduction being refunded was done on a tax-sheltering basis. Additionally, there is a Correcting Amounts Report and one to zero out these amounts in mass. The Correcting Amounts Report will also display Remarks; so don’t forget to use this field from the Employee Deduction Master to add information about the refund!

But, what if the amount is such that it would be a hardship for the employee (if you waited until the next payroll) or what if the employee is no longer a current employee? In my white paper, I explain how to do a refund to an employee in OpenRDA when it cannot be done through a regular payroll. If you would like a copy of it, please add comments to this article or send an email to support@openrda.com

Phyllis

phyllis.flowers@gmail.com

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