Special Payroll Deductions

Yahoo Archive
1
Marc-

Better double check the reporting of Section 125 deductions on the W-2s. I
believe these SHOULD BE REPORTED on the W-2s.

Rick Ludwig
Corp. Controller
Metal Spinners, Inc.

> ----------
> From: Marc Durre[SMTP:mdurre@...]
> Reply To: vantage@egroups.com
> Sent: Thursday, September 14, 2000 8:54 AM
> To: vantage@egroups.com
> Subject: RE: [Vantage] Special Payroll Deductions
>
>
> Steve
> I asked your questions to our payroll guru and received the following
> answers.
>
> Our cafeteria plan is set to Special Type: Pre-401K Section 125.
> The cafeteria plan deduction is not reported on the W2.
>
> I hope this helps.
>
> Marc Durre
> Durre Bros.
>
> -----Original Message-----
> From: Steve Sanders [mailto:ssanders@...]
> Sent: Wednesday, September 13, 2000 4:30 PM
> To: vantage@egroups.com
> Subject: [Vantage] Special Payroll Deductions
>
> Our company recently changed our health insurance to a cafeteria-style
> plan
> that allows the employee to have their premiums deducted from pre-tax
> earnings. We've created a new deduction master file, and we've figured
> out
> how to get it to be exempt from the right taxes, but I have a couple of
> concerns:
>
> 1. Should the "Special Type" field be set to something besides None? My
> gut instinct is that it should be, but none of the choices listed looks
> right.
>
> 2. Will this information have to be reported separately on the W-2? If
> so,
> does this have to be done manually? I can't see how Vantage could do it
> with the way we have to set it up.
>
> 3. Any other suggestions/comments from anyone already doing something
> similar?
>
> TIA
> ================
> Steve Sanders
> Delta Centrifugal Corp.
>
>
>
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2
1. Should the "Special Type" field be set to something besides None? My
gut instinct is that it should be, but none of the choices listed looks
right.

A. Special type = None is correct, just be sure you use the exempt from taxes
fields when setting up the deduction.

2. Will this information have to be reported separately on the W-2? If so,
does this have to be done manually? I can't see how Vantage could do it
with the way we have to set it up.

A. Nothing will have to be done manually. Vantage will automatically reduce
the wage boxes on the W2 for the pre-tax deduction.

3. Any other suggestions/comments from anyone already doing something
similar?

A. Vantage payroll handles this very well and the tax savings to the company
is tremendous. Whoever led this change should remind his/her boss about it
at their next review !!!

TIA
================
Steve Sanders
Delta Centrifugal Corp.


We no longer allow attachments to files. To access/share Report Files,
please go to the following link: http://www.egroups.com/files/vantage/
(Note: If this link does not work for you the first time you try it, go to
www.egroups.com, login and be sure to save your password, choose My Group
s, choose Vantage, then choose Files. If you save the password, the link
above will work the next time you try it.)
3
Steve,

Do you have a 401k plan in place and is your cafeteria plan set up to deduct
health insurance prior to 401 k calculation?
This is the way ours is and given this type of scenario you would set
special type for the Health insurance deduction to a pre-401k section 125.

> 1. Should the "Special Type" field be set to something
> besides None? My
> gut instinct is that it should be, but none of the choices
> listed looks
> right.

You would need to insure that the priority is given a -1. This will insure
that health insurance is deducted from the gross before any other
deductions. Also exempt from all taxes.

Darren Mann
Miller Products Co.