NOTE: Select this option to include the tax amount the employee needs to pay with each pay period.

Set up the deduction

1. Select PR, Utilities, Maintain Deductions.
2. Click the New button.
3. Enter the deduction ID and Description.
4. For Method, select Fixed amount per pay period.
5. For Category, select Company-Ind.
6. Enter the Credit account and Debit account.
7. Select the taxable fields for the deduction.
    CAUTION: Without selecting FWT and SWT, the W-2 won't include the deduction in Box 1 and Box 16. 
8. In the Active section, select ALWAYS.
9. Click the W-2... button.
   • In the Box number to use field, clear the None check box
   • Specific the W-2 box for the benefit
10. Save.

Add the deduction to the eligible employees

1. PR, Employees, Maintain Employees.
2. Select the employee.
3. Click the Deductions button.
4. Assign the deduction to the employee's record.
5. Enter the amount of the deduction.
6. Save.
7. Repeat for all employees requiring this deduction.

Process Payroll 

1. PR, Processing, Time Card Entry.
2. Select the employee.
3. Process the timecard, then Save.
4. PR, Processing, Automatic Payroll Calculation.
5. Calculate the timecards, then preview the Payroll Register to verify the calculations.
6. Process payroll checks in PR, Processing, Print Payroll Checks.

 NOTE: Select this option to show the deduction as taxable in Box 1 on the W-2, without showing the actual tax withheld.

Set up the deduction

1. Select PR, Utilities, Maintain Deductions.
2. Click New.
3. Enter the deduction ID and Description.
4. For Method, select Variable, entered on the time card.
5. For Category, select Company-Ind.
6. Enter the Credit Account and Debit Account.
7. Select the appropriate taxable fields.
    CAUTION: Without selecting FWT and SWT, the W-2 won't include the deduction in Box 1 and Box 16. 
8. In the Active section, select ALWAYS.
9. Click the W-2...button. 
   • In the Box number to use field, clear the None checkbox
   • Specify the W-2 box and ID to use for the benefit
10. Save.

Add the deduction to the employee

1. Select PR, Employees, Maintain Employees.
2. Select the employee.
3. Click the Deductions... button.
4. Assign the deduction to the employee's record.
5. Enter the amount of the deduction.
6. Save.
7. Repeat for all employees requiring this deduction. 

Calculate the time card

1. Select PR, Processing, Time Card Entry.
2. Process the employee time cards.
3. Select Ded/Other pays... button and uncheck normal deductions and other pays.
    NOTE: You’ll need to reactivate the normal deductions and other pays when you process their next payroll.
4. For the Earnings Type, select the Deduction created above and enter the Gross Pay amount of the deduction.
5. Click Accept, then Save.
6. Select PR, Processing, Automatic Payroll Calculation.
7. Calculate the timecard for the employee.
8. Click OK on the dialog box "One or more employees has checks with a negative balance..." 
9. Review the Payroll Register for accuracy.

Make edits in Manual Payroll Calculation

1. PR, Processing, Manual Payroll Calculation.
2. Select Yes for the message "This employee has a calculated check on file...".
3. Select Fed/State taxes... box and zero out any amounts in the Employee column.
4. Click OK. 
5. The new net pay amount for the check is zero.
6. Click Save and then click Yes to post the zero-amount check.

Print the Payroll check

1. PR, Processing, Print Payroll Checks.
2. Print the 0.00 dollar check.

 NOTE: Choose this option to display tax withheld amounts in the W-2 box and generate a tax deposit you need to pay. 

Set up taxable deduction 

1. PR, Utilities, Maintain Deductions.
2. Click New.
3. Enter the deduction ID and Description. 
4. For Method, select Variable, entered on time card.
5. For Category, select Company-Ind.
6. Enter the Credit account and Debit account.
7. Select the appropriate taxable fields for the deduction. 
    CAUTION: If you don't select FWT and SWT, the W-2 won't include the deduction in Box 1 and Box 16. 
8. In the Active section, select ALWAYS.
9. Click the W-2... button.
   • In the Box number to use field, clear the None check box
   • Specify the W-2 box for this benefit and the appropriate ID to use
10. Save.

Set up an Other Pay

1. PR, Utilities, Maintain Other Pays.
2. Click New.
3. Enter the Other Pay ID and Description. 
4. For Method, select Variable, entered on time card.
5. For Category, select Individual.
6. Enter the Debit account.
7. Clear all the taxable check boxes.
8. Select Add to gross.
9. In the Active section, select ALWAYS.
10. Save.

Add the deduction and other pay to the employee

1. PR, Employees, Maintain Employees.
2. Click the Deductions... button.
3. Assign the deduction to the employee record.
4. Select the Other Pays... button.
5. Assign the other pay to the employee's record.

Enter the time card 

1. PR, Processing, Time Card Entry.
    NOTE: You'll need to reactivate the normal deductions and other pays when you process the next payroll.
2. For Earnings type, select the Deduction.
3. Enter the Gross Pay amount of the deduction.
4. Click Accept.
5. Select the Other Pay from the Earnings list.
6. Enter zero in the Gross pay field.
7. Click Accept.
8. Save.

Calculate the time card

1. PR, Processing, Automatic Payroll Calculation.
2. Calculate the timecard for the employee.
3. Click OK on the dialog box "One or more employees has checks with a negative balance...".
4. Make a note of the calculated amount for taxes on the Payroll Register for the employee. 

Manual Calculation of time card

1. PR, Processing, Manual Payroll Calculation.
2. Select Yes on the message "This employee has a calculated check on file..."
3. Click " Ded/Other pays…".
4. For the Other pay, enter the amount of the calculated tax as noted on the Payroll Register.
5. Click OK and save the record.
6. The new net pay amount for the check is zero.
7. Click Save and then click Yes to post the zero-amount check.

Process the Payroll Check

1. PR, Processing, Print Payroll checks.
2. Print checks.

 NOTE: If you haven't processed any payroll checks with the benefit, you can manually add in Enhanced Tax Reporting. 

1. PR, Taxes, Print W-2 Forms.
2. Manually add the fringe benefit amount directly on the W-2 in the Enhanced Tax Reporting program. 
3. Add extra boxes to the Form W-2 if the box is missing on the W-2 grid.