Frequently Asked Questions: Payroll
What happens when I create a payroll?
SuitePeople U.S. Payroll funds the tax liabilities for that payroll batch. A liability payment transaction is recorded in your NetSuite account.
Which liabilities are paid by SuitePeople U.S. Payroll?
All federal, state, and local taxes are paid by SuitePeople U.S. Payroll. SuitePeople U.S. Payroll does not pay non-tax liabilities such as 401(k) and health insurance.
How often does SuitePeople U.S. Payroll file my federal, state, and local tax forms? End of the year? End of the quarter?
SuitePeople U.S. Payroll files all of your quarterly and annual federal, state, and local tax forms.
Tax deposits and filings are made based on the deposit schedule assigned to your company by each jurisdiction. Deposit schedules are set on the Jurisdictions subtab of the Set Up Payroll page.
Clients are responsible for maintaining the deposit schedules for their company.
What happens when I create a payroll adjustment?
If funding is required, SuitePeople U.S. Payroll automatically funds the unpaid liability and pays it when the liability is due.
SuitePeople U.S. Payroll does not pay employees as a result of adjustments. The action that results in funding is only an increase in tax liability.
How are refunds of overpaid tax liabilities handled?
If you create a payroll adjustment or reverse a paycheck that results in an overpayment of liabilities, SuitePeople U.S. Payroll does not refund those liabilities. Refunds come directly from the tax agency.
Whenever a negative tax liability adjustment is created by an employer, NetSuite does not refund money for these adjustments. This is because the adjustment is for past payrolls for which either SuitePeople U.S. Payroll has already paid taxes or taxes were paid directly.
A refund also cannot be issued when you reverse a payroll for which taxes have already been paid to tax agencies by SuitePeople U.S. Payroll. Instead, tax credits are stored in the payroll system and are adjusted against future tax deposits. The future tax deposit payments are reduced against these credits and require fewer funds from you for those payments. The system tracks this funding and reduction in payments and by marking the portion of the funding and payment transaction as a “payer-to-payee” transaction.
If all credits from overpaid liabilities in a quarter are not used completely, you receive a refund for the credit balance from the tax agency. If a payroll is reversed before the pay date and taxes are not paid to tax agency yet, then SuitePeople U.S. Payroll refunds the money.
What happens if a tax agency contacts me directly with questions about a tax filing or deposit?
In the unlikely event that a tax authority has questions, SuitePeople U.S. Payroll represents you with the tax authority.