What situations require an amendment?
You may need to make adjustments to payroll tax returns and deposits reported in a previous quarter or year. Amendments may be necessary for various reasons, including:
• Reporting an employee's earnings to the wrong state
• Reporting non-taxable wages as taxable
• Calculating taxes using an incorrect rate
• Failing to report earnings
For taxes and wages for the current year, make the necessary corrections through payroll to ensure accurate totals. Corrections requiring the use of year-to-date adjustments to modify information for a previous quarter within the year may require amended returns.
How long does it take to complete an amendment?
The length of time required to complete an amendment is determined by the complexity of the situation and, if necessary, the availability of information or funds. The average length of time to complete an amendment is forty-five (45) days. However, if the amendment request results from an agency's escalated inquiry, such as a levy or lien, the process receives a response time of thirty (30) days or sooner.
Who requests an amendment?
Amendment requests may come from you or an agency. If you are the requester, you must complete an Amendment Request Form and provide the new, corrected information so that the Tax Service can transfer it to the amended return.
In addition to the Amendment Request form, you must forward an Adjustment Audit Report showing the adjustments if the amendment request is the result of year-to-date entries made via your payroll system.
Occasionally, an agency notifies the Tax Service of the need for an amendment. This notification may come from an agency phone call to an account representative or through an inquiry and could be the result of an incorrect rate or incorrect reporting of wages.
Amendment request procedures
The Tax Service prepares and files amendments on behalf of customers for any tax periods originally processed by the Tax Service. Once the amendment is completed, the Tax Service mails or electronically transmits the amended return, a cover letter detailing the amendment, and any supporting documentation to the agency. The Tax Service also mails you a copy of the amended return and cover letter for your records.
Complete the following steps to request an amendment.
1. Contact your Tax Service Representative.
Discuss the need for amendments with your Tax Service Representative. Your representative will also be glad to discuss the fees associated with amended returns.
2. Complete an Amendment Request form.
If it is determined an amendment is needed, complete the Amendment Request form. A sample form can be located in the Reports and Forms chapter. Explain the need for, and the intent of, the amendments. Be sure to include:
All wage and tax categories affected
What portion of each adjustment is to be applied to each prior quarter
Copies of your payroll reports reflecting the adjustments and/or negative wages
Adjustment Audit Reports and applicable Wage and Tax Report and/or Employer's Quarterly State Report of Wages Paid to Each Employee
3. Provide additional information as needed.
While preparing an amended return, additional information may be required to properly complete the return or to meet the agency's requirements. Some examples of requested information include:
• Wage detail information
• Third Party Sick Pay information
• Employee counts
4. Submit an Amendment Request form to your Tax Service Representative.
The Tax Service will proceed with preparing your requested amendment(s).
5. Provide additionally requested information, if applicable.
To ensure a prompt response to amendment requests, be prepared to provide additional information, which was not provided with your original request, on an Information Request form within five days of the request. A sample Information Request form is included in the Reports and Forms chapter.
6. Provide additional funds, if applicable.
Depending on the type of adjustments being made, amendments may result in your company being required to pay additional taxes to the affected jurisdictions. If this is the case, you will receive an Authorization to Debit fax, requesting authorization to debit your account for the required tax funds within three days of the request. A sample authorization to Debit form is included in the Reports and Forms chapter.