How to Set up a Taxable Benefit
Taxable benefits can be set up as a cash type benefit, where a dollar amount is issued to the employee reimbursing them, or subsidizing them with a housing allowance. Cash Type taxable benefits behave very much like income, in that payroll taxes are withheld at source.
Non- cash, covered in this tutorial, demonstrates the setup of an Income payroll item that is taxable, and a Deduction payroll item as an offset, leaving only the payroll tax withholdings. The amount of the benefit is calculatd, and then reversed out by the deduction, the payroll taxes are not reversed.
Video source: videos:juno:taxablebenefit(noncash)1108221049.flv
Created by Charlene Scott at 8/22/2011 10:49:44 AM