How do I review state withholding tax?

Reports

This is part of the quarterly reconciliation checklist. These instructions will help you verify the state withholding amount paid for the quarter. You can also use these instructions to verify the state withholding amount paid each pay period or month.

These instructions will show you how to verify state withholding tax using the pay code transaction report, but you can also use the

Payroll history, or the
Employee tax summary.

Watch a video

Learn how to use the state withholding report and pay code transaction report to reconcile state withholding. [MP4]

First, print the SWT report for the quarter

The SWT report will show the total wages subject to state withholding. The SWT form shows the tax withheld and the total amount paid.

Second, print the pay code transaction report

You will need to add the hours worked for the pay codes that have hours that go towards work hours for your employees. This may not mean adding every pay code that gets hours in your system. It means adding the pay codes that will be used to calculate state withholding. For example, pay codes for vacation, sick pay, and paid time off may not go towards hours worked or cannot be categorized that way, so those pay codes would not be included.

Add the pay codes for

Regular pay, employee hours
Overtime, employee amount
Hol Work, employee amount

If you need help setting up this report, contact customer service at (800) 228-9851 for assistance.

Second, compare the SWT report to the pay code transaction report

Check if the

taxable amount on the SWT report matches the taxable amount for the SWT pay code on the pay code transaction report.

202302, 2023Apr19