Liability Problem
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An employee changed a Simple IRA from one company to another. The month of Oct. was paid to the new co.. However, it stills showing owing that amount to his old Simple IRA acct. How do I delete it?.
Answer
The payment to the company is controlled by the payroll item. You either pay the check to the new company, or you set up a new item to the new company, in which case you should have removed the old item for this employee. You pay these using Liability checks, so make sure the amount to the new company was paid using a liability check. Also, you need to check if this is the employee share or the employer match. If it is the employee share, it impacts taxes and you can't just delete it or adjust it away. If the error is using the wrong payroll item, you can add the amount back to the next check. You will get a pop up that this is supposed to be a deduction but you can use this method to reverse a deduction.
