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Stephanie Schmucker

Stephanie Schmucker

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Reimbursable Employee Expenses

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titleOption 1

Option #1

  • Calculate the amount of Medicare tax as it applies to the total.  

    Tip
    If there is Medicare pickup, be sure to inflate the Medicare amount as well as the total and applicable (taxable) gross


    •  Go to Core/Adjustments
      • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose Medicare Tax 
      • Type - Choose Total Gross
      • Transaction Date - Enter or choose date from calendar
      • Amount - Enter in the amount to be included in the total gross
      • Description - Enter in a description (optional)
      • Click 'Save'
    •  Go to Core/Adjustments
      • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose Medicare Tax 
      • Type - Choose Applicable (taxable) Gross
      • Transaction Date - Enter or choose date from calendar
      • Amount - Enter in the amount to be included in the applicable (taxable) gross
      • Description - Enter in a description (optional)
      • Click 'Save'
  • Before the last pay of the calendar year:
    • Enter the Medicare amount due on the Medicare Payroll Item record as an error adjustment both employee and employer amounts
    • If city withholding is needed:
      • Calculate the amount of city tax as it applies to the total
      • Enter above calculated amount on the city record(s) Payroll Item as an error adjustment
  • Manually increase the total and applicable (taxable) gross amount on the Federal, Ohio, OSDI, City
    •  Go to Core/Adjustments
      • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose Federal Tax 001
      • Type - Choose Total Gross
      • Transaction Date - Enter or choose date from calendar
      • Amount - Enter in the amount to be included in the total gross
      • Description - Enter in a description (optional)
      • Click 'Save'
    •  Go to Core/Adjustments
      • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose Federal Tax 001
      • Type - Choose Applicable (taxable) Gross
      • Transaction Date- Enter or choose date from calendar
      • Amount - Enter in the amount to be included in the applicable (taxable) gross
      • Description - Enter in a description (optional)
      • Click 'Save'
    •  Repeat the same process for State, OSDI and City records. 

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titleOption 1

Option #1

  • Determine the total amount paid through the USAS disbursement.
  • Calculate the amount of Medicare tax as it applies to the total. 
  • If there is Medicare pickup be sure to inflate the Medicare amount as well as the total and applicable (taxable) gross.  If there is Medicare pickup be sure to inflate the Medicare amount as well as the Total and Applicable Gross.
  • Before the last pay of the calendar year, enter this amount on the Medicare Payroll Item record as an Error Adjustment for both Employee and Employer amounts
  • If city withholding is needed, calculate the amount of city tax as it applies to the total
  • Before the last pay of the calendar year, enter this amount on the City Payroll Item(s) as an Error Adjustment

  • Manually reduce the total and applicable (taxable) gross amount on the Federal and Ohio record by the amount paid through USPS

    Info
    W2 Report Submission will add it back to these figures based on the Fringe Benefit Amount.


    •  

      Go to Core/Adjustments

      • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose Federal Tax 001
      • Type - Choose Total Gross
      • Transaction Date - Enter or choose date from calendar
      • Amount - Enter in the amount to be reduced from the total gross
      • Description- Enter in a description (optional)
      • Click 'Save'
    •  Go to Core/Adjustments
      • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose Federal Tax 001
      • Type -  Choose Applicable (taxable) Gross
      • Transaction Date - Enter or choose date from calendar
      • Amount - Enter in the amount to be reduced from the applicable (taxable) gross
      • Description - Enter in a description (optional)
      • Click 'Save'
  • Repeat the same process for the State record
  • Manually increase the total and applicable (taxable) gross amounts on the OSDI records by the amount paid through USAS disbursement:
    •  Go to Core/Adjustments
      • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose OSDI Tax
      • Type - Choose Total Gross
      • Transaction Date - Enter or choose date from calendar
      • Amount - Enter in the amount to be included in the total gross
      • Description - Enter in a description (optional)
      • Click 'Save'
    •  Go to Core/Adjustments
      • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose OSDI Tax
      • Type - Choose Applicable (taxable) Gross
      • Transaction Date - Enter or choose date from calendar
      • Amount - Enter in the amount to be included in the applicable (taxable) gross
      • Description - Enter in a description (optional)
      • Click 'Save'
  • Enter both the amount paid through USAS disbursement and the amount paid through USPS as a Fringe Benefit on the Federal record:
    •  Go to Core/Adjustments
      • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose Federal Tax 001
      • Type - Choose Fringe Benefits
      • Transaction Date - Enter or choose date from calendar
      • Amount - Enter in the amount of the Fringe Benefit
      • Description - Enter in a description (optional)
      • Click 'Save'

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Non-Cash Amounts for W2 Reporting

Note

Scenario 1 is used prior to the last calendar year payroll, using the Non-cash Taxable Benefit type and district wants the amount to appear on the W2 as wages but NOT in Box 14 as Fringe Benefits:

Scenario 2 is NOT used before last calendar year payroll and district wants the amount to appear on the W2 as wages in Box 14 as Fringe Benefits

Scenario 3 is NOT used before last calendar year payroll and district wants the amount to appear on the W2 as wages but NOT in Box 14 as Fringe Benefits

Scenario 1

Using Non-cash Taxable Benefit type prior to the last calendar year payroll and NOT in box 14 as Fringe Benefits

If the district wants the amount to appear on the W2 as wages but Not in box 14 as Fringe Benefits.

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  •  

    Using the Taxable Benefits Type, 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.

    • Enter the amount as a 'Taxable Benefits' on the 001 Federal record: 

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        • Click 'Create'
        • Employee - Find employee by typing in a few characters of first or last name
        • Payroll Item - Choose Federal Tax 
        • Type - Choose Taxable Benefits
        • Transaction Date - Enter or choose date from calendar
        • Amount - Enter in the amount of the Fringe Benefit
        • Description - Enter in a description (optional)
        • Click 'Save'

Medicare Total and Taxable Amounts will automatically be increased by the Taxable Benefit Amount so Medicare tax will need to be recorded and paid. 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.

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.

    •  Go to Core>Adjustments
    •  
      • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose Medicare Tax 
      • Type - Choose Amount Withheld
      • Transaction Date - Enter or choose date from calendar
      • Amount - Enter in the withholding amount of Employee Medicare
      • Description - Enter in a description (optional)
      • Click 'Save'
    •  Go to Core>Adjustments

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