Before you begin

Consult with your tax advisor for questions about the method of calculation, limits and taxable status of this deduction. Sage Support Analysts are unable to recommend tax advice.

Set up an employer-paid deduction

1. Go to PR, Utilities, Maintain Deductions.
2. Click the New button and define an ID for the deduction. For example, FAMLI.
3. Complete the following fields.
   • Method (calculation) -  check with your tax advisor for the specific calculation method for your state 
      EXAMPLE: Percent of gross, percent of taxable wages, fixed amount 
   • Category - Company-sys
   • Credit account - specify the liability account you defined for FAMLI deductions
   • Debit account - specify the expense account you defined for the employer contribution
   • Amount - enter the rate as percent or fixed amount. Enter percent as decimal, for example enter 0.60 for 60%
   • Limit, if any - Enter any annual maximum limit for this contribution, and specify per Year
   • Active - always
   • Taxable boxes - Check with your tax advisor for specific tax requirements
      NOTE: Checking the taxable boxes will add the deduction amount to the employees' taxable wages  
   • Tax category - select Local.  Select Local for the amounts to populate on state tax reports and W-2 boxes
4. Consult with your tax advisor to determine if you need to include the wages in Box 14 of the W-2.
   • To include wages in Box 14, click the W-2 button, uncheck None, and enter 14 in the Box number to use field. Then enter the ID to use 
   • Consult with your tax advisor for the specific ID to use for your state
      CAUTION: It's important you enter the correct ID for your state in order for the information to populate on the W-2 form. 
5. Select OK on the W-2 window.
6. Click SAVE to save your deduction.

Add the deduction to each employee record

1. Go to PR, Employees, Maintain Employees.
2. Select the employee from the list.
3. Click the Deductions... button.
4. Add the deduction you created above, then click Accept and OK.
5. Repeat for each employee.

Process payroll checks

1. Process regular timecards.
2. The deduction will calculate automatically.
3. To show the deduction on the payroll register and check stubs, select PR, Utilities, Maintain Payroll Parameters, Checks. Then check the box for Company paid deduction on stubs.