Benefit Codes - Benefit Tab

Access this tab using Maintain>Payroll>Benefit Codes.

Use this form to add a new Benefit Code or edit an existing one. The benefit codes entered are used throughout the system. Since the system uses benefit codes when it is calculating pay, creating an accounting entry for payroll, calculating and reporting W-2 information and other tax reports, and reporting, you must set up your benefit codes in order to use many of the forms on the Timesheets and Activities menus.

You must assign a General Ledger expense and liability account on the Benefits tab, in order to create an accounting entry. Use the Distribution tab to determine the distribution of the benefit expense across all other segments.

Use this tab to add a new Benefit Code or edit an existing one. You must assign a General Ledger expense and liability account in order to create an accounting entry.

 

Code: Enter a Benefit Code. You should make the first eight characters of the code unique so that the paycheck displays a useful identifier. We recommend limiting your entry to strictly alphabetic characters (A through Z) or numeric characters (0 through 9), and avoiding the use of symbols.

Status: Specify the status of the Benefit Code . When creating a new code, accept the default status, A (Active), or select I (Inactive) or D (Discontinued), from the drop-down list. The status can be changed at any time. Below are valid status entries and their descriptions:

• Active - An active status allows payroll to be processed using this code.
• Inactive - Set a code to inactive when it is not being used regularly for payroll, but it could be used at some point. A warning message appears when attempting to use an inactive code. The warning message is for notification only; the code can still be used in the payroll process.
• Discontinued - Designate a code as discontinued when it is no longer being used. The system does not allow payroll to be processed using a code with a discontinued status.

Title: Enter the title of the Benefit Code.

Expense Account: Enter the General Ledger expense account for this Benefit Code. The account must be an existing General Ledger account that is not a subledger-type account. The account must have a status of Active or Inactive.

Liability Account: Enter the General Ledger liability account for this Benefit Code. The account must be an existing General Ledger account that is not a subledger-type account. The account must have a status of Active or Inactive.

Show Code on Check Stub: Select this check box to display the Benefit Code information on the check stub.

W-2 Information Box Number, Box Code: Select W-2 Box Number 7, 8, 10, 11, 12, or 14 if this Benefit Code falls into one of those W-2 categories.

• Box 12 requires a corresponding box code, and cannot be used for anything other than the items specified by the box codes. You must enter one of the following Box Codes: A-H, J-N, P, R-T, V, W, Y, Z, AA, BB, CC, DD, EE, FF, GG, or HH.
• Box 14 should be used for any other information you want to give your employee. You can enter up to five alphanumeric characters. The Box Code serves as a "label" for the optional amount displayed in box 14.

To have the benefits and taxes from this Benefit Code appear in W-2 boxes 1-6, 16, 17, 18, and/or 19 (for Federal, State, and Other Taxes), select the check boxes on the Taxes tab and leave the W-2 Box Number box on this tab blank.