How to adjust federal and state income tax for a pay run?
Learn about Federal Income Tax (FIT) / State Income Tax (SIT) Override.
What is FIT/SIT Override?
FIT/SIT (Federal and State Income Tax) Override enables payroll administrators to override or edit the system calculated federal and state income taxes to any value from 0 to the net pay of that employee. (These include federal income tax. federal income tax- supplemental, state income tax, and state income tax-supplemental.)
How do I use the FIT/SIT Override feature?
In the draft state of the pay-run, select an employee that needs the FIT/SIT taxes to be overridden for:
1.) Once selected, scroll down and select the edit icon.
2.) A pop-up will appear, showing the system generated amount and an override amount. (The One-time override amount field is where you can add the new amount. For example, if the system calculated amount is $200, and you need lower the FIT/SIT amount to $190, enter 190.00 into the field).
3.) Add the new override amount in the one-time override amount field.
4.) Select Confirm to save the amount.
5.) You can see the updated amount with the new tag "Manually Adjusted".
6.) Continue with the rest of your pay-run. This is as test.
How do I revert back to system calculation amount?
If you have overridden a FIT/SIT tax amount and wish to revert it back to the system calculated amount, then:
1.) Select edit to the tax you wish to revert back.
2.) A modal will appear with the system calculated tax crossed out and the inputted overridden amount displayed.
3.) Select the "Revert to Zenefits Calculated Amount" checkbox, the Zenefits calculated amount will no longer be crossed out and the override amount value will disappear.
How do I revert back to system calculation amount?
If you have overridden a FIT/SIT tax amount and wish to revert it back to the system calculated amount, then:
1.) Select edit to the tax you wish to revert back.
2.) A modal will appear with the system calculated tax crossed out and the inputted overridden amount displayed.
3.) Select the "Revert to Zenefits Calculated Amount" checkbox, the Zenefits calculated amount will no longer be crossed out and the override amount value will disappear.
What happens if I made a mistake in the FIT/SIT Amount?
If the pay-run is still in the draft state, then you can perform a reversion as stated above. However, if you have already submitted for processing, then you would need to perform steps for a correction.
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