Set up a fringe benefit earnings code:
- Open Payroll / Setup / Earnings Code Maintenance.
- Create an earnings code and select “Fringe” from the ‘Type of Earnings’ drop-down box.
- Enter information in all necessary fields, and click the ‘Accept’ button.
Process fringe benefits:
- Open Payroll / Main / Payroll Data Entry.
- Enter Payroll Cycle information.
- Select the employee from the ‘Employee No.’ lookup.
- Click the ‘Lines’ tab.
- Enter the fringe benefits earnings.
Note: An offsetting line with deduction code “FB” is created automatically.
- Enter remaining earnings and deductions as applicable.
- Click the ‘Accept’ button and continue with payroll processing.
- The “FB” deduction code deducts the Fringe Earning line amount from the net check amount, while taxes are deducted automatically and the net pay amount is adjusted.
- Fringe benefit earnings should be processed with regular pay in order to properly deduct taxes.
- Fringe benefit earnings are added to the gross wages, included in the gross amount, and printed in the box labels benefits included in Box 1 on the W-2 forms.
- The ‘Fringe Benefit’ field in the federal tax summary window of Employee Maintenance is used to display year-to-date fringe benefit amounts (all earnings entered with the fringe type) received by the current employee and reported as taxable income. This field can is view-only and cannot be edited.
If you need additional assistance, please call our Technical Support Department at (502) 429-6902 ext. 227 or email firstname.lastname@example.org and list YEAR END ASSISTANCE in the subject line.