Revised:  4/2021

Q: An employee did not have a retirement deduction taken out...

Question: 

An employee did not have a retirement deduction taken out on a payroll that was run in a prior month. Would it be best to void and redo that pay or adjust for this on their next pay?

Answer: 

Since this error occurred in a prior month and the payroll has already been reported to the retirement system, it should be corrected on the next payroll.  However the retirement system should be notified to inform them of this situation because the payroll has already been reported and retirement wages were submitted but no contributions were reported. When the file for this next payroll is reported the retirement contributions will be overstated and the submission may get flagged and/or rejected.