• Consult your Tax Advisor for taxable status of the fringe benefit. Sage analysts are unable to assist with tax advice
• Follow all steps below to ensure your W-2, quarterly and annual tax reporting is accurate

Set up a non-taxable deduction for the fringe benefit amount

1. Select PR, Utilities, Maintain Deductions.
2. Select the New button.
3. Enter a deduction ID and Description. 
4. For the 'Method', select Variable, entered on time card.
5. For the Category, select Company-Ind.
6. Define the General Ledger accounts for the Credit account and Debit account.  
7. Deselect the appropriate taxable fields for the deduction.
    CAUTION:  The amount won’t be included in Box 1 and 16 of W-2 if you don't select FWT and SWT. 
8. In the Active section, select the From option. Use dates that include the computer or calendar date that you’re processing the check.
9. Select the 'W-2...' button.
10. In the Box number to use field clear the None check box and specify the W-2 box for this fringe benefit. 
11. Save.

Add the deduction to the employee record

1. Select PR, Employees, Maintain Employees.
2. Click the Deductions... button to assign the deduction to the employee's record.

Process the zero amount check to record the fringe benefit

1. Select PR, Processing, Time Card Entry to process the employee time cards.
2. Deselect other deductions and other pays that are active in Ded/Other pays. 
    NOTE: To inactivate the deductions or other pays for all employees at once, go to PR, Utilities, Maintain Deductions and Maintain Other Pays. Change the Active date to an expired date.  
3. In Earnings select the fringe benefit Deduction and enter the Gross Pay amount of the deduction.
4. Accept.
5. Save the record.
6. Go to PR, Processing, Automatic Payroll Calculation.
7. Calculate the payroll for the employees.
8. Review the Payroll Register for accuracy.
9. Select PR, Processing Print Payroll Checks and print the checks. 
10. If prompted OK to post this zero amount check?, select Yes.
11. Activate the normal deductions and other pays when you process the employees next payroll.