What are adjustments?
Adjustments in Justworks are generally created when either a company and/or an employee needs a tax correction that results in either a debit or a credit to the company and/or the employee.
What situations would require an adjustment?
Some adjustments occur on a recurring basis, for example reconciliation for quarterly taxes such as New York MCTMT and Massachusetts EMAC. Adjustments can also be created on a one-off basis to account for a specific correction, such as entering a tax-exemption for an employee’s work visa that has a retroactive effective date, resulting in the need to refund a portion of the previously collected taxes. Another common example is when a member is updated as a >2% S-Corp Shareholder in their Justworks profile. Due to IRS restrictions on pre-tax benefits for >2% S-Corp Shareholders, the update can result in tax adjustments to account for the taxable value of employer-paid and pre-tax benefits.
How do adjustments appear in my Justworks account?
You can find adjustments under the Payments>Invoices section. Adjustments will be associated with the debit or credit date and have a note that can be viewed on hover. Multiple adjustments that occur on the same debit or credit date may not be grouped together, which means that each adjustment appears individually both in the Justworks account, as well as in your bank statement.
You can view adjustments by navigating to Payments>Invoices and scrolling to the applicable date. Hover over to the line item view the description.