Deduction Refund for previous year payrolls
- Knowledge Assistant
Owned by Knowledge Assistant
Description of Issue
An employee was withheld the incorrect health insurance deduction in 2019, how to I handle a deduction refund for the first 2020 payroll?
Context
- Munis
- Employee Deductions
- Payroll Start and Status
- Earnings and Deductions
Cause
Employee was withheld the incorrect deduction/amounts in 2019.
Resolution
Contact the IRS for a recommendation on how to handle the refunded deduction amount. Backdate refund and report in 2019 with the difference or report in 2020 and deal with the difference in 2020 W-2.
Once the IRS has made their recommendation, use the below link for the Deduction Refund.
Additional Information