4.1.6     Prepare & Process Wage List Adjustments

[ 4.1.6.1 -   Procedure ]

Prepare and process Wage List Adjustment Report (Form C-7) to Data Processing Department to correct social security numbers, employee names, and/or wages previously reported by employers.

4.1.6.1     Procedure

Employer Quarterly Report filed with the Texas Workforce Commission are occasionally revised by the taxpayer. Correction or adjustment reports are sent to this agency to report revised amounts.

Adjustment reports sent from employer representatives are also processed if it is determined by the accounts examiner processing the adjustments that the reports sent are filed by parties having capacity to make adjustments on behalf of the employer. In this regard, evidence of third party capacity to file such reports takes the form of the TWC  Form C-42, Written Authorization, being duly executed, approved by this agency, and on file.

Other evidence indicating "third party capacity" may be notes, letters, or other memoranda which in the judgment of the accounts examiner, provides sufficient documentation that the intent of the employer is to bring about the adjustment(s) indicated.

The Wage List Adjustment Schedule (Form C-7) is used to adjust employee wage information fields reported by employers on the Employer's Quarterly Report (Form C-3) and/or Wage List Continuation (Form C-4).

The bulk of Wage List Adjustment Schedule (Form C-7) are processed by the Data Processing Department without being sent to the Tax Department or Employer Accounting and Review Unit.

The total of the individual wage amounts reported to the Texas Workforce Commission is the Total Wages paid for the quarter. Additionally, the wages amounts reported both support and document Taxable Wage amounts reported.

This specific function may overlap with adjustment tasks performed in other units. Examples of this would be:

• Completion of required individual Wage List adjustments arising from the Supplemental Report audit and review;
  
  
• Processing a partial or complete Wage List to a report which either originally had no wages or none of the wages which are being added;
  
  
• Adjustment arising from the reposting of quarterly report within an account to a different calendar quarter;
  
  
• Substitution of one magnetic storage device for another to effect wage list adjustments en masse;
  
  
• Split journal entry;
  
  
• Communication function, the accounts examiner may formulate an adjustment report from a note, letter, or other memoranda (e.g. Federal Form 941c, W2C, etc.), which gives direction as to the nature of wages list adjustment sought;

In order to execute the Wage List adjustment, the accounts examiner may access the Employer Master File. The actual processing of the Wage List Adjustment can be done by the accounts examiner or sent to the Data Entry Section of the Data Processing Department.

The Accounts Examiners may make corrections to specific wage items, in lieu of having the Form C-7 keyed by Data Entry. The examiner will usually input these corrections if there are 10 or less corrections to be made. If the examiner chooses to key these corrections a message must be entered on the comment screen including the quarter and year and the reason for the adjustment. It should also indicate if adjustment reports are being sent to Controller for processing.

From the Unemployment Insurance Benefits perspective, the sum of all quarters wages reported by an employer, or compiled by the Texas Workforce Commission from the best information obtained, when used to determine an individual's right to benefits, are known as "Benefit wage credits".

When the Adjustment Report (Form C-5) is received reflecting a change in total wages, the adjustment report Form C-7 must accompany the Adjustment Report (Form C-5. Exceptions to this rule are when:

• a B-27 prompts the (C-5) adjustment;
  
  
• an adjustment arises from Appeal or Commission Appeal Decision;
  
  
• the (C-5) adjustment is for a calendar quarter deemed to be "out of base period". "Out of base period", for purposes of processing forms C-7, means an adjustment more than 6 calendar quarters old, including the present calendar quarter;
  
  
• the wage list was complete and correct as filed, with the adjustment correcting an entry on the C-3, which was erroneous;
  
  
• for stated reasons, it may be impossible to obtain a completed Wage List Adjustment Report (Form C-7);
  
  
• a Magnetic Format Wage List is sent as (substitution) Corrected Wage List;

Appeals, Commission Appeals, or B-27 procedures do not use the C-7 as a vehicle for establishing or changing individual wage amounts reported to the TWC.

For any of the listed exceptions to the filing of a Wages List Adjustment Report (Form C-7), a notation must be entered at the lower portion of the Adjustment Report (Form C-5), stating the reason why no Wage List Adjustment Report (Form C-7) is included.

Usually, this function is completed within 3 to 5 working days after being assigned to the accounts examiner in the Employer Accounting and Review Unit.

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