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Evo-ERP and DBA Classic >> Payroll >> California DE-6 is incorrect
http://www.istechforum.com/YaBB.pl?num=1256927128

Message started by cathyh on 10/30/09 at 11:25:28

Title: California DE-6 is incorrect
Post by cathyh on 10/30/09 at 11:25:28

I have been told by my PR department that the DE-6 for California is not correct (discovered by the worker's comp auditor). It is misstating the Total Gross Pay in Column 1 because it includes 125 Health insurance premiums which are excluded from total gross pay by California. The second column is correct.

This insurance is one of our user deductions, we have others that are included in column 2 that are exempt from state income tax
but this is the only one that is taken out before gross pay is calculated. Should I just try to capture this is Access or is there a chance that you can fix this soon? We have to submit an amendment to our previous quarterly reports.

Title: Re: California DE-6 is incorrect
Post by cathyh on 11/02/09 at 08:39:42

Any help on this?

Title: Re: California DE-6 is incorrect
Post by cathyh on 12/11/09 at 10:57:01

Is there any chance at all of resolving this before end of year? Yes or no will suffice..... Please! $$$?

Title: Re: California DE-6 is incorrect
Post by Lynn_Pantic on 12/11/09 at 15:35:02

The DE231EB (State guideline) says "Employer contributions for benefits excludable from gross income." are not subject but "Employer contributions into a cafeteria plan for a health savings account." are subject.

The problem is, there is no way for the program to know which user Deductions might be 125 plan as designated in the first section as opposed to the second section or other state tax exempt deductions such as 401k. The only way I can think of is to prompt for which user defined deductions in fact are considered 125 plans not subject to be included in Gross Wages, similar to the way the W-2 asks for retirement/401k deductions.

Unless you have a better idea, that is what we will do.

Title: Re: California DE-6 is incorrect
Post by cathyh on 12/11/09 at 15:57:08

As I was thinking this through I realized that it would be hard for you to know which deduction a user designated as the 125 plan - your solution would work for us. Thanks, Lynn.

Title: Re: California DE-6 is incorrect
Post by cathyh on 12/28/09 at 15:05:43

I just was told by my payroll dept head that she has had a conversation with a California State Tax person concerning the DE-6 and the way that Evo does it is correct- the way we had been filing it using Quickbooks for the previous 7-8 years is incorrect. The subject tax is the total gross income amount with nothing subtracted out. Score one for EvoERP!
Lynn, I hope your programmers haven't spent too much time on this..... very sorry.