What happens if taxes are not withheld during a void year-end check?

When taxes are not withheld during a void year-end check, it can significantly impact the year-to-date figures recorded for both the employee and the employer. The year-to-date figures reflect all wages, deductions, and withholdings for the employee over the course of the year, and if a check that should have had taxes withheld is voided, the system may not properly reflect this in the employee’s final tax liabilities. This can lead to errors in calculating the employee's total taxable income and their resulting tax obligations, which could potentially result in discrepancies when filing tax returns.

Recording the withheld taxes accurately is crucial for maintaining accurate year-to-date balances and ensuring that employees’ tax obligations are correctly stated in reports to tax authorities. As a result, not withholding taxes during a void check can create confusion and errors in payroll records, necessitating corrections that could complicate year-end processing.