What causes tax variances?

Tax variances are commonly caused by:

• Rate changes 

• End-of-quarter adjustments made following the final payroll of the quarter.

  • Example: Adding wages and taxes to be recorded in the quarter - or an adjustment to an employee taxed in the wrong state.

• Adjustments done by Namely while preparing for quarter-end filing.

You can help prevent variances by making rate change updates as you receive notices from tax jurisdictions (see: Adding and Editing Company Tax Codes and Rates in Namely Payroll), and following our Payroll Processing Validation Best Practices.