Question:
The taxable wages report shows that the state taxable wages are different from the federal taxable wages
 

Answer:
This is caused by the state wages being sheltered at some time during the year.

Resolution

To resolve this issue,
1. Create a backup of your data files.
2. Open Payroll
3. Click on options
4. Select Codes, Shelter codes.
5. Click the find button and select the first shelter code in the list, check to make sure that state withholding is not different than federal withholding.
6. If no there are no differences between federal and state withholding then it will be necessary to recalculate wages in open files.
This is located under employee in version 9 and under options, file maintenance of all other versions.
7. Once that is done check the taxable wages report to verify that the taxable wages are correct.
8. If there are differences please talk to the plan administrator to see if the shelter code is setup correctly. If state is not supposed to be sheltered then change it to taxable.
9. Click save
10. Now recalculate wages in open files. This is located under employee in version 9 and under options, file maintenance of all other versions.
11. Once that is done then check the taxable wages report to verify that the taxable wages are correct.
12. If taxable wages are still not correct contact Cougar Mountain Technical Support at 1-800-390-7053.