Why is there an amount under Tax Payable or Tax Refund Column of Annualization Report?

In case the December last period has already been processed but the Annual Tax Table was not used to compute the tax,or if you processed another payroll after the processing the annualization, an amount will appear in column M or Tax (Over/Refund) Under/Payable that represents the employees’ tax refund or tax payable which is not yet given or deducted to the employee. The amount in column M should be zero if the payroll has been annualized.  

To check the amounts, you may download the annualization report and refer to column M or Tax (Over/Refund) Under/Payable. Kindly note that negative amounts (-) in the Annualization Report is Refund while positive amounts (+) are Payable. You may check this KB on how to download the Annualization Report: Annualization.

To correct or zero out the amount on column M or Tax (Over/Refund) Under/Payable, you need to process an Adjustment Run and upload the amounts via one-time adjustment. Here’s how: 

1. Create payroll with Adjustment run payroll run type and Select 2020  under 'Year drop-down'. 

2. Under Payroll options: Select No for PHIC, SSS, Pag ibig and compute tax. Then hit save

3. In the Annualization Report, get the amount in column L or Tax (Over/Refund) Under/Payable. The amount should be uploaded as a one-time adjustment with Withholding tax adjustment type. You may check this KB on how to download the Annualization Report: Annualization.

You need to reverse the sign to zero out the amount in the annualization report. Payable should be tagged as negative (-) while Refund should be tagged as positive (+). Here's how to process one-time adjustment: How to Set Up a One-Time Adjustment using Mass Upload (Excel File)

After processing the adjustment run, you may add or deduct the same amounts on your next payroll via one-time adjustment. You may also opt to deduct or add the amounts in full or divided on the desired number of cut-offs. In case you wish to divide the amounts for the number of months, you may upload the amount via Recurring adjustment. 

1. Create Payroll for 2021.

2. Beside the employee name you may add an adjustment for the tax refund or tax payable adjustment. tagged as Miscellaneous. You may add the amounts manually via one-time adjustment or via bulk upload. Here’s how: How to Set Up a One-Time Adjustment for a Specific Employee or How to Set Up a One-Time Adjustment using Mass Upload (Excel File)

  Manual add

  Bulk upload one-time adjustment

Note: negative amounts (-) in annualization report is Refund while positive amounts (+) are Payable.