To include in last Payroll of the year

Using the PAYROLL/PAYROLL PAYMENTS - CURRENT or PAYROLL/PAYMENTS-FUTURE program, the amount should be entered using a pay type of Non-Cash Taxable Benefits Pay Type (NC3). This pay type represents one kind of non-cash earnings for the employee. This amount is taxed and is included as taxable wages but does not increase the employee's check in any fashion.

Federal, Ohio, or OSDI tax amounts will be calculated. All of these will be treated according to the federal rules. The software provides the ability to withhold city tax on non-cash earnings. This can be activated by checking the "Tax Non Cash Earn" field on the city tax record in the CORE/PAYROLL ITEM CONFIGURATION program.

Complete the payroll.

The non-cash earnings amount will not be included in the gross pay amount, nor in the gross totals found on Pay Report or REPORTS/PAY AMOUNT SUMMARY REPORT OPTIONS.  The Pay Report will provide a total figure of all non-cash earnings in the Pay Type Totals section. This extra total will help in balancing purposes.

If not included in Payroll but before running W2s

If the 'Non-cash Taxable Benefit' pay type was not used during payroll processing, the Taxable Benefits (NC3) payment amount must be entered under the CORE/ADJUSTMENT JOURNAL using the Taxable Benefits Type in order for the Taxable Benefits (NC3) amount to show correctly on the W2 form.  This amount would only be entered under the 001 Federal Payroll Item. This will update the total and taxable gross totals on the Federal, State, City (If applicable) OSDI and Medicare records during W2 Report. No manual adjustments are needed for the Gross and Taxable Gross amounts.

Taxable Benefits (NC3) amount does not get added to the Quarter Report Totals Summary 'Non-Cash Earnings'.

If the Medicare withholding was paid by the employee (1.45%) and employer (1.45%), adjustments must be made to the Amount Withheld and Board Amount of Payroll Item.  This amount will affect the Quarter report:

• Deductions Items Summary, 692-Employee Contrubtion *TD Totals for Employee portion only x 1
• Form 941 QTD Employees' Medicare Contributions x 1 and Employers' Medicare Contributions x 1
• Form 941 Line 13) Federal Withholding Deposits x 2

If Medicare is fully board paid (Pickup), then an Adjustment should be made to the Board's Pickup Amount of Payroll Item (1.45%) only.  This will update both Medicare Pickup and Medicare on the Employee's W2. This amount will only affect these lines on the Quarter Report:

• Deductions Items Summary 692-Employer Pickup *TD Totals x 2
• Form 941 Line 2) QTD Taxable Wages x 2
• Form 941 QTD Employees' Medicare Contributions x 2
• Form 941 'Includes board paid Medicare/FICA' and 'Picked up by board' amount x 2
• Form 941 Line 13) Federal Withholding Deposits x 2