Steps
to Complete the Balancing Information OptionThe Balancing Information option in Payroll completes the calculation of the formulas (below) for taxes used to balance Employee W2s. When completing the Balancing Information option, the formulas compare the calculated amounts to the actual amounts, and if a formula does not balance (the calculated and actual amounts do not equal), a variance will appear for the formula. If a formula has a variance (does not balance), the employees causing the variances can be displayed so that the necessary corrections can be made. Within the Balancing Information option, the taxable amounts for a posted or unposted payroll calculation batch, or the taxable amounts for a specific period (based on Check Dates or Processing Months), can be calculated. SUI recommends that the Balancing Information option is completed for each payroll throughout the year to ensure the amounts are correct prior to printing the employee checks and that the W2s will balance at the end of the calendar year.
The formulas computed within the Balancing Information option include the Gross Earnings, FIT Gross, SIT Gross, Medicare Gross, Social Security Gross, and FIT/Medicare Gross Comparison.
Gross Earnings Formula:
Add Type Pay Codes + Contract Type Pay Codes + Add Type Deductions - Deduction Type Pay Codes = Gross Earnings
Note: Only include Add type and Contract type pay codes that are taxable; for example, exclude Add type pay codes used for non-taxable reimbursements, such as a pay code defined for mileage reimbursements. Only include taxable Add type deductions. Only subtract Deduction type pay codes that are pre-tax or non-taxable.
FIT Gross Formula:
Gross Earnings - Flex Deductions - Tax-Sheltered Annuities - Employee Retirement (if pre-tax to FIT) + PIKs (if FIT taxable) = FIT Gross
Note: If wages were paid (to an estate) pre-tax for FIT after an employee's death, there will be a variance for that employee for this formula.
SIT Gross Formula:
Gross Earnings - Flex Deductions - Tax-Sheltered Annuities - Employee Retirement (if pre-tax to SIT) + PIKs (if SIT taxable) = SIT Gross
Medicare Gross Formula:
Gross Earnings - Flex Deductions + PIKs (if Medicare taxable) - Student Workers Earnings = Medicare Gross
Note: If you have employees that were not subject to Medicare (excluding student workers), there will be a variance for those employees for this formula.
Social Security Gross Formula:
All States Except Illinois and Missouri:
Gross Earnings - Flex Deductions + PIKs (if Social Security taxable) - Student Workers Earnings = Social Security Gross
Illinois and Missouri Only:
Gross Earnings - Flex Deductions + PIKs (if Social Security taxable) - Student Workers Earnings - Gross Earnings from Employees Exempt from Social Security (for employees set up with retirement deductions flagged as Has Employees Exempt from Social Security) = Social Security Gross
Note: If you have employees that were not subject to Social Security (excluding student workers, and for Illinois and Missouri organizations only, excluding employees set up with retirement deductions flagged as Has Employees Exempt from Social Security), there will be a variance for those employees for this formula. Employees who have reached the Social Security limit are accounted for and not considered as part of the variance, if applicable.
FIT/Medicare Gross Comparison Formula:
Medicare Gross - Tax-Sheltered Annuities - Employee Retirement (if pre-tax to FIT) + Student Workers Earnings = FIT Gross