Tax jurisdictions match payments received to liabilities reported on a monthly, quarterly, or annual basis. If an overpayment is detected, either a refund check or a credit memo is issued by the agency for the amount of the overpayment.
When you receive these refunds or credits verify, that they are valid. If you cash a check for an invalid refund, the agency will assess penalty and interest to your company. If you are unsure of the validity of a refund check or credit from an agency, contact your Ceridian tax service representative for assistance.
Receiving a refund check
When you receive a refund check from an agency, you must first determine whether the overpayment is valid and whether it pertains to a period in which Ceridian provided filing services. To determine the appropriate actions to take refer to the table below:
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If... |
Then... |
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the return indicates the overpayment is valid and Ceridian has been funded for the overpayment, |
no further action is required. The refund is yours to keep. |
|
the return indicates the overpayment is valid, but funds were not forwarded to Ceridian, or Ceridian advanced you the funds with a promissory note, |
the refund belongs to Ceridian. Contact your Ceridian tax service representative. |
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you are unsure of the validity of the refund, |
send a copy of the check to your Ceridian tax service representative, who will help determine its validity. |
Note: Ceridian can only provide assistance when the overpayment pertains to those periods in which we provided payroll-tax filing services.
Receiving a credit memo
When you receive a credit memo, forward the original to your Ceridian tax service representative. When credit memos are issued by agencies, the original period generating the credit is not always indicated. Your Ceridian tax service representative can determine the correct procedure to follow. If the credit memo is valid, Ceridian enters a credit internally to be applied to the next scheduled deposit within the quarter. Your quarterly tax statement will apply the credit to your ending balance.
If you receive a refund check after you have forwarded a credit memo from the same agency to Ceridian, notify your Ceridian tax service representative immediately. This may prevent decreasing a pending deposit and avoid agency penalties and interest by receiving a refund and taking a credit. Ceridian does not assume any liability for payment of penalty and interest in these circumstances.