How to identify and view tax variances

If you notice an unexpected debit or credit on your bank statement from Check Technologies, it is likely a tax variance. You can use your Tax Receipt in 7shifts to identify these adjustments and ensure your records are accurate.

What is a Variance? Variances are standard adjustments made to reconcile the difference between taxes collected during the quarter and the final amount owed to government agencies.

Things to know

• When your finalized quarter-end balancing is finalized results in an active transaction (debit or credit), you'll receive a "Filing Period Closed" email one week in advance (e.g., April 2nd). This email includes a Tax Receipt PDF that breaks down every adjustment for your records.
  • Any total balancing variance of $1.00 or less is automatically waived. You will not receive a notification or see a transaction for these nominal amounts.
• If a balancing transaction is cancelled or a payroll is reopened, you will receive a "Tax Transfer Cancelled" email. This confirms the previous receipt is void. If the process is retried, a new "Filing Period Closed" email and an updated PDF receipt will be issued.
• Refiling taxes may result in associated fees.
• Employers are responsible for keeping tax details up to date and paying agencies directly if filings fail.

Access the Tax Receipt

To see a breakdown of your tax adjustments, follow these steps in your 7shifts account:

1. Click on Payroll.
2. Navigate to Tax > Tax Forms.
3. Search for the Tax Receipt.

Identify the cause

Variances often appear after a retroactive tax rate change. For more information on bank statement codes, please see our guide on bank codes.

How to prevent future variances

While it's not always possible to avoid variances caused by late notice of rate changes from government agencies, you can take proactive steps to help. Best practice is to ensure your tax rates are up-to-date at the start of each quarter and ensure Third Party Administrator (TPA) access is enabled in all your agency portals.

Next steps

If you still cannot identify the cause of the variance, it may relate to missing tax information or a failed filing. Please contact 7shifts Support for assistance. When messaging us, provide a clear screenshot of the transaction and the associated bank code.