You may want to change a payroll item for any of the following reasons:
Your company is assigned a new rate for state unemployment tax.
The annual limit for a retirement plan deduction changes.
Your health insurance rates increase.
Your accountant wants you to assign an item to a different liability or
What the changes affect
If you're using Assisted Payroll, you cannot change the
tax tracking classification or taxability of payroll items since the payroll service files your
tax forms based on these items. If you need to change this information, you must
However, on receipt of a notice from a taxing authority, you can and should change your company's rate for state unemployment tax or
any other tax rate that varies by company. You can also change any information
that does not affect tax amounts or tax forms.
To do this task
Go to the Lists menu and click Payroll Item List.
Select the item you want to change.
Click the Payroll Item button and then click Edit Payroll Item.
Click Next in the Edit Payroll Item wizard until you find the window you
want and make the necessary changes.
Note: You cannot change the type of the item. For example, you can't change a
payroll item marked as an Addition to a Deduction.
Click Finish to record your changes.