Can someone provide instructions for entering Taxable Fringe Benefits?
I need to enter personal use of a company vehicle for our owners for 2023.
Answer
Taxable Fringe Benefit
Best answer by Sonia Echols
Hi Gillian,
You will need to:
1 - Setup a Deduction and Benefit Codes
2 - Add to the Employees Deductions and Benefits under Employee Payroll Settings
3 - Create an Adjustment Check
- Add the benefit amount under Deductions
- Add Taxable Gross where applicable.
- Federal (FICA/FIT)
- Add Taxable Wage where applicable. Do not exceed Taxable Wage limits, such as FICA.
- Check to see if you need to add to State or Local Tax
- Calc but do not release.
Adjustment Check
4- Run the Taxes by Paycheck Report for the Calendar year for the Employee (do not include Unreleased) Look at totals page.
5-Edit report and include Unreleased. Verify that the amounts are as you expect.
6 - Release the adjustment.
NOTE: You can find instruction on how to calculate the Fringe benefit in Publication 15-B (2023), Employer's Tax Guide to Fringe Benefits | Internal Revenue Service (irs.gov) and Publication 5137, (Rev. 10-2022) (irs.gov)
Sonia Echols
+1Hi Gillian,
You will need to:
1 - Setup a Deduction and Benefit Codes
2 - Add to the Employees Deductions and Benefits under Employee Payroll Settings
3 - Create an Adjustment Check
- Add the benefit amount under Deductions
- Add Taxable Gross where applicable.
- Federal (FICA/FIT)
- Add Taxable Wage where applicable. Do not exceed Taxable Wage limits, such as FICA.
- Check to see if you need to add to State or Local Tax
- Calc but do not release.
Adjustment Check
4- Run the Taxes by Paycheck Report for the Calendar year for the Employee (do not include Unreleased) Look at totals page.
5-Edit report and include Unreleased. Verify that the amounts are as you expect.
6 - Release the adjustment.
NOTE: You can find instruction on how to calculate the Fringe benefit in Publication 15-B (2023), Employer's Tax Guide to Fringe Benefits | Internal Revenue Service (irs.gov) and Publication 5137, (Rev. 10-2022) (irs.gov)
Sonia Echols
Has something changed in this process? It is no longer giving the option to calculate taxes… Do we need to manually calculate taxes for this now?
Acumatica - Senior ERP Implementation Consultant
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