Create the deduction

1. Select PR, Utilities, Maintain Deductions.
2. Click the New button.
3. Enter the deduction ID and Description.
4. From the Method drop-down box, select the calculation method desired.
   • Select Fixed amount per pay period if the deduction amount remains the same for each paycheck
   • Select Variable, entered on the time card if the amount is different for each paycheck
5. For Category, select Company-Ind because the company pays it and the rate is individual to each employee.
6. Define the General Ledger accounts for the Credit account and Debit account.  
7. Select the appropriate taxable fields for the deduction. Consult your tax advisor for guidance on taxable status. 
    TIP: If the amount is to appear in Box 1 of the W-2, you must select FWT taxable.  Select SWT taxable for the amount to appear in Box 16 of W-2.
8. Click the W-2... button.
9. In the Box number to use field, clear the None check box and specify the W-2 box for this fringe benefit. Consult your tax advisor for guidance on the appropriate Box and ID to use.
10. Select Save and exit Maintain Deductions.

Add the deduction to each employee

1. Go to PR, Employees, Maintain Employees.
2. Select the appropriate employee ID.
3. Click Deductions.
4. In ID, select the deduction ID.
5. If the deduction method is Fixed Amount per pay period, enter the amount in the Amt/Rate field.
6. Click Accept and OK.
7. Select Save.

Process payroll

1. Select PR, Processing, Time Card Entry.
2. If the method is Variable, entered on time card, select the deduction from the Earnings field. Then enter the amount in Gross Pay.
   • If the deduction method is Fixed amount per pay period, it calculates when you process the time card
3. Select PR, Processing, Automatic Payroll Calculation. Select to print the Payroll Register and verify all information before you print the checks.
4. Print the checks using PR, Processing, Print Payroll Checks.
    NOTE: If the fringe benefit is taxable, it increases the employee's taxable pay. The taxable pay will be higher than the gross pay by the amount of the fringe benefit.