Setting up payroll benefits that increase taxable earnings but not net pay

How to set up a benefit payroll calculation that increases taxable earnings but doesn't increase net pay in Sage 100 Contractor

Set up the benefit payroll calculation

1. Open menu 5-3-1 Payroll Calculations.
2. In the data control box, enter the number to assign to the calculation.
3. Enter a brief description in the Description box.
4. Select 0 - None for the Tax Type.
5. Select 4 - Add/Deduct (taxable) for the Calculation Type.
6. Select 11 - Per Pay Period for the Calculation Method.
7. Leave the Default Rate, field blank.
8. Leave the Default Max field blank.
9. Select 8 - Dollars/Year for the Max Type.
10. Enter the Job Expense, Shop Expense, Overhead Expense, and Admin Expense accounts.
11. Select the payroll cash account for the Credit Account.
12. Select all tax boxes under the Subject to section, unless instructed otherwise by your accountant.
13. Enter the applicable box number and code in the W-2 Box and W-2 Code fields.
14. Click File, Save.

 NOTE: This calculation adds the dollar value to the gross wages, computes the taxes, and then deducts the dollar value from the gross wages. The calculation results in an increase to the taxable earnings but doesn't affect the Net Pay amount on the 5-2-2 Payroll Record. 

Add the benefit payroll calculation to the employee record

1. Open 5-2-1 Employees.
2. Display the employee's record.
3. Click the Calculations tab.
4. In the Calculation column, in an empty cell, click the down arrow to display the Payroll Calculations Lookup window.
5. Select and insert the benefit payroll calculation.
6. Enter the per pay period benefit amount in the Rate cell.
7. Enter the annual maximum dollar amount in the Maximum cell.
8. Click File, Save.