Taxable Fringe Benefit

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