When to use FSS Adjustments
FSS adjustments are temporary adjustments for a single payroll. For example, a new employee may have underpaid taxes and incur a large deduction in their first payslip.
Thus, by deducting an FSS Adjustment, the employee may have more net income, and the underpaid FSS will be carried forward to the following payroll.
The FSS Adjustment is intended to be used for Main Tax calculations and should not be used for other types of FSS, such as Part-Time or Overtime.
When to use SSC and Maternity Adjustments
Adjustments to SSC and Maternity can be done to correct amounts from previous payrolls.
For example, an employee was given a backdated salary increase or had an incorrect Date of Birth, and hence, data that is already submitted needs to be corrected.
The SSC or Maternity Adjustments will primarily correct the total (net payments and FS5/payroll report details). However, these will not correct any weekly data stored for FS3 purposes. We'll refer to this further below.
How to use Adjustments
In Run Payroll, when Adding a One-Time Allowance, you will find five options related to updating the deductions:
- FSS Adjustment
- SSC Adjustment
- SSC EE Adjustment
- SSC ER Adjustment
- Maternity Adjustment
To adjust the FSS, SSC or Maternity, select the relevant Adjustment, and insert an amount:
- positive to Add the cost of the deduction
- or negative (with a minus) to reduce the deduction cost
The SSC adjustment will impact both employee and employer amounts. If you only need to update one of these, you would have to then use either the SSC EE (employee) or SSC ER (employer), particularly for employees on Category B and paying 10%.
Fixing FS3 after using SSC and Maternity Adjustments
After concluding payroll that has contained SSC or Maternity adjustments, you will notice that the FS3 is updated with likely inaccurate details.
For most adjustments, you should be able to View and Edit the FS3's Weekly Wage Breakdown to correct this breakdown and ensure the Weekly Wages are reported historically as you require.
In this process, you can also select new weeks (Mondays) to add for backdated SSC payments.