• 05 Dec 2024

Prebuilt HCM Report for Tax Error Detection: Auditing and Managing Payroll Compliance

What Are Tax Errors in Payroll?

Tax errors can occur in payroll systems due to incorrect employee data, such as invalid SSNs or negative gross amounts. These discrepancies need to be flagged and resolved promptly to ensure compliance with tax regulations and avoid penalties.

Key Features of the Prebuilt HCM Report for Tax Error Detection

DataTerrain’s Prebuilt HCM Report for Tax Error Detection is designed to help HR and payroll teams effectively track and resolve payroll tax discrepancies. This report identifies issues such as:

• Invalid SSNs
• Negative Gross Amounts
• Other issues typically found in payroll tax discrepancy reports, include conditions found in the Oracle HRMS Unacceptable Tax Balance Report.

This report helps audit and resolve issues related to tax withholding accuracy and other payroll data anomalies that could affect tax filing and compliance.

How the Report Works: Parameters for Tax Error Auditing

This report can be generated with the following parameters:

• Effective Date: Defines the timeframe for tracking tax errors and discrepancies.
• Person: Filters the data to focus on individual employees and their tax-related errors.
• Organization: Allows filtering by department or unit, making it easy to assess discrepancies within specific groups.

The Effective Date is mandatory, ensuring that the data retrieved is timely and accurate for payroll compliance management.

Output Details: Tax Error Identification and Resolution

The Prebuilt HCM Report will provide detailed output, including:

• Employee Number
• Employee Name
• SSN
• Reason for Tax Error (e.g., negative gross pay errors, invalid SSNs, or other discrepancies)

The report is available in Excel, PDF, or CSV format for easy review and integration into your audit process. This allows teams to resolve payroll tax errors quickly and efficiently, improving overall tax filing accuracy.

Scheduling and Regular Tax Error Audits

HR and payroll teams can schedule this report on a weekly or bi-weekly basis, helping to stay on top of payroll tax discrepancies and prevent potential issues with tax reporting. Regular audits of tax withholding issues help ensure that employees' tax information is accurate and up-to-date, facilitating timely corrections and preventing errors that could result in penalties.

Why Choose DataTerrain for Tax Error Auditing?

With extensive experience in HCM reporting for payroll, DataTerrain is a trusted partner for identifying and resolving payroll tax discrepancies. Our expertise in payroll processing audits and tax error detection ensures that your payroll remains compliant with tax regulations, avoiding costly mistakes and helping you maintain tax data integrity.

Conclusion: Improve Payroll Compliance with DataTerrain

The Prebuilt HCM Report for Tax Error Detection simplifies the process of identifying, auditing, and managing payroll tax errors. By regularly running tax error audits, payroll teams can maintain tax balance accuracy and avoid costly discrepancies that could affect tax filings.

For more information or to request a demonstration, contact DataTerrain today!