End-of-Quarter Payroll Tax Reconciliation and Edits

Background

Even though taxes are calculated each time you run payroll, we do an additional review of calculations for several payroll taxes at the end of the quarter to account for activities that may have occurred after a payroll was run. We also make adjustments for select outlier cases related to taxability of specific fringe benefits and employer retirement contributions. This helps catch and correct for situations that may affect quarter end tax amounts.

What does the quarter-end reconciliation and edit process do?

• Reviews wage and tax amounts for FUTA, SUTA and SUTA surcharges
• Reviews wage base limits to ensure any voided paychecks and non-sequential payrolls have not resulted in incorrect quarter end tax amounts 
• Adds or removes taxable wages and tax amounts as needed based on quarterly payroll totals
• Adjusts tax amounts when tax rates have changed during the quarter
• Updates select state and local taxes for atypical S-Corp Health Insurance fringe benefits and some employer contribution taxability as necessary
• Ensures payroll changes are accurately reflected before filing by making payroll edits to reflect adjustments needed

This helps protect you from incorrect tax calculations, overpayments or underpayments, and potential filing errors.

You can read more about specific FUTA adjustments on our help article, “How Patriot Calculates and Monitors FUTA Tax.”

Why did I get a tax bill when I didn’t run a recent payroll?

💡After we run the quarter end reconciliation process and edits, you’ll receive a bill (or refund) for any quarter-end adjustments over $1 if you’re using our Full Service Payroll.

You can view any payroll tax bills or refunds in your software. Go to Payroll > Payroll Tax Reports > Tax Collections. 

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