Why does the Payroll Tax and Payroll Summary Reports by State show different data?

We would like to inform you that we have investigated both reports. As per our discussion, we come to the conclusion that the difference observed in these two reports is due to the treatment of exempt allowance amounts in the gross figures.

In the Payroll History Report, we include the exempt allowance total amount in the Gross amount. On the other hand, in the Payroll Tax Report, we do not include the exempt allowance amount in the gross figure. This variance results in the difference in figures between the two reports.

When you run a report without selecting the state, the following figures match between the two reports:

• Normal Hrs Total
• Allowance Total (Exempt + Non-Exempt)
• Overtime Hours Value

However, for the Payroll History Report, we calculate Gross as Exempt Allowance + Non-Exempt Allowance + Overtime Hours Value + Normal Hours Total. In contrast, for the Payroll Tax Report, we calculate Gross by including Normal Hours Total + Overtime Hrs Total + Non-exempt Allowance.

Therefore, the figures differ based on the treatment of allowances. If you select the state, both reports will provide different figures, as the Payroll History Report will work according to the member state, while the Payroll Tax report will work based on the client state.