2002 Calendar Year Closing
Prior Year Check Reversal
Checks that are dated for the last check date of the year
that must be cancelled, and are received in Payroll Services for processing no
later than ten working days after the check date, are exempt from these
procedures since there are guidelines provided by the IRS and DRS to handle this
1) In addition to having the check or advice of deposit
in their possession, the agency must receive a check or money order from the
employee for the total amount of the federal and state tax deduction. The
agency is to deposit these funds into their account.
Note: If an employee is due a check on the last check
date of the year but did not receive one due to an error, the agency must
request a petty cash check before 12/31, to allow Payroll Services to adjust
that years W-2 form. All petty cash checks paid and recovered in the next
calendar year, become wages paid in that year. This allows the State of
Connecticut to remain in compliance with Federal and State regulations on
2) Complete forms COP-9 and CO-1081 to begin the recovery
process. The COP-9 is to include the original gross pay from the stub, and
itemize the FICA/Medicare, retirement, health insurance and other deductions
in their appropriate boxes, excluding federal and state withholding tax. The
amount of the check on the COP-9 is to include the original net plus federal
and state taxes withheld.
Form CO-1081 should reflect the total deductions being
reversed, excluding federal and state tax withheld.
Forms COP-9 and CO-1081 are to be forwarded to the
Payroll Services Division with a copy of the agency's deposit slip (showing
the agency received the federal and state tax from the employee) and the
original check or advice of deposit and it's stub.
3) The Payroll Services Division will process the
reversal on the next payroll cycle. On that check date the agency will be
credited the appropriate deduction amounts.
Payroll Services Division will also process the W-2c
adjusting the employee's taxable wage and FICA/Medicare deductions for the
appropriate tax year. The W-2c will be forwarded to the agency and should
then be forwarded to the employee. Payroll Services will report the
adjustments to the Federal and State Government.
It is the employee's responsibility to file an amended
tax return with the IRS and DRS, and if appropriate, to receive a refund of
federal and/or state taxes.
*The IRS and D.R.S. will not accept adjustments to an
employee's tax return after 3 years.
*If an agency submits a prior year cancellation that
includes federal and state deductions, Payroll Services will adjust the COP-9
and CO-1081 to remove the deductions. The agency will be responsible for
getting this money back from the employee.
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