Deduction Refund Tax Withholding Amounts Are Doubled

While doing a deduction refund, I manually added the deduction code for Federal and State.  The deduction gross is automatically coming in doubled.  

• Payroll

• Deduction and Benefit Master

• Employee Deductions

The deduction refund process uses the pre/post-tax setup of the deduction which is being refunded to calculate taxes. If Payroll Exception entries are not added for the refund pay code, the system will double tax the refunded deduction.

1. Go to Deduction and Benefit Master (Payroll>Payroll Setup>Deduction and Benefit Master)

2. Click Exceptions in the toolbar. 

3. Click Add. 

4. Define the deduction code. Next to Processing Code select 1-All Pay types are included except then TAB down to the Exclusion Ranges fields. 

5. Define the ranges of pay codes to be excluded from the deduction. 

   1. Example: If Pay code 800 is the only pay code subject to FICA the Exclusion Ranges would read 100 to 799 and 801 to 999.

6. Click Accept. 

Refunding Deductions Within Payroll