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FAQ: I am balancing my W2s by completing the Balancing Information option and have a variance; what should I do?

After completing the Balancing Information option, if a formula has a variance (does not balance), make the necessary corrections for the applicable employees, if needed, and then repeat Steps 1-4 on the Payroll End of Calendar Year Checklist; refer to the list below for tips on variances that may appear.  If corrections do need to be made for an employee, click here to view another FAQ for instructions on resolving mistakes found when balancing.

Tips for Variances:

  • If wages were paid (to an estate) pre-tax for FIT after an employee’s death, there will be a variance for that employee for the FIT Gross formula.  If applicable, click the Show Details button to verify the variance is the total amount of wages paid to the estate.
  • If there is a State Income Tax defined and used in the system for a different state than where your organization is located (or there are one or more employees not set up with the State Income Tax defined for the state where your organization is located), a message for Multiple States will display to the right of the Variance field for the SIT Gross formula.  To view the amounts for a different State Income Tax than the one currently displayed, click the down-arrow button for the field under the SIT Gross label and select the desired state (or to view the amounts for those employees not set up with the State Income Tax defined for the state where your organization is located, select None).  If applicable, click the Show Details button to view the details if there is a variance.
  • If you have employees that were not subject to Medicare (excluding student workers), there will be a variance for those employees for the Medicare Gross formula.  If applicable, click the Show Details button to verify the variance is the total amount of wages paid to those employees.
  • If you have employees that were not subject to Social Security (excluding student workers, and for Illinois and Missouri organizations only, excluding employees set up with retirement deductions flagged as Has Employees Exempt from Social Security), there will be a variance for those employees for the Social Security Gross formula.  If applicable, click the Show Details button to verify the variance is the total amount of wages paid to those employees.
  • If you have employees that have reached the Social Security limit, a message for Limit Reached will display for the Social Security Gross formula, and the amount over the limit is accounted for by the system and not included in the variance, if applicable.