Reimbursable Employee Expenses

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Last updated: Dec 02, 2024 by Stephanie SchmuckerVersion comment
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Reimbursable Employee Expenses

All Option #1 scenarios, the employee pays any Federal, Ohio and OSDI taxes on amount paid through USAS disbursement as a part of the year-end tax return filing. However, if desired, the district can enter an Error Adjustment(s) for a calculated amount prior to the last calendar year payroll and appropriate taxes will be withheld.

Scenario 1

If paid through USAS Disbursement and district wants the amount to appear on the W2 as wages but not in Box 14 as Fringe Benefits:

Option #1

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

     

    Go to Core/Adjustments
    Go to Core/Adjustments

  • 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
    Go to Core/Adjustments
    Repeat the same process for State, OSDI and City records. 

 

Option #2

  • Prior to the last pay of the calendar year, total the amounts paid through  USAS disbursement.

  • Add a Payroll Item Configuration record payable to the district; using the type of Regular.

  • Add the Payroll Item record for each employee. Enter the reimbursed amount paid to the employee in the Rate field. Enter a Stop Date (a date prior to the next payroll pay date) so the Payroll Item is active for only one pay.

  • Using a Miscellaneous Pay Type in Payroll Payments - Future or Current for the amount reimbursed to the employee.

  • Deposit Outstanding Payables check as a reduction of expenditure against the benefit account

Scenario 2

If paid through USAS Disbursement and district wants the amount to appear on the W2 as wages and in Box 14 as Fringe Benefits:

Option #1

  • 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

  • Before the last pay of the calendar year, enter withholding amount on the Medicare Payroll Item record as an error adjustment both employee and employer amounts

  • Manually increase the total and applicable (taxable) gross amount on the Medicare Payroll Item record (if applicable):

    Go to Core/Adjustments
    Go to Core/Adjustments

  • Before the last pay of the calendar year, 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 city record(s) as it applies:

    Go to Core/Adjustments
    Go to Core/Adjustments

  • Manually increase the Total and Applicable gross on the OSDI record as it applies:

    Go to Core/Adjustments
    Go to Core/Adjustments

  • Enter the amount in the fringe benefit field on the Federal record:

    Go to Core/Adjustments

 

Option #2

  • Prior to the last payroll of the calendar year, total the amounts paid through a USAS disbursement

  • Add a Payroll Item Configuration record payable to the district; use a type of Regular

  • Add the Payroll Item record for each employee. Enter the reimbursed amount paid to the employee in the Rate Field.
    Enter a Stop Date so the payroll item is active for only one pay.

  • Add a Miscellaneous Pay Type in Payroll/Payroll Payments-FUTURE or CURRENT, for the amount reimbursed to the employee.

  • Deposit Outstanding Payables check as a reduction of expenditure against the benefit account

  • Manually reduce the Total and Applicable (taxable) Gross amounts on the Federal and Ohio records by the total amount entered as the Miscellaneous Pay Type:

  • Repeat the process for the State Tax record as well.

  • Enter the amount as a Fringe Benefit on the Federal record:

Scenario 3

If paid through USPS and district want the amounts to appear on the W2 in Box 14 as Fringe Benefits:

  • Enter the amount as the Fringe Benefit on the Federal record:

  • Manually reduce the applicable (taxable) and total gross amounts on the Federal and Ohio records by this amount

Scenario 4

If paid through USPS and district does not want this included with the salary account charges in USAS:

Scenario 5

If paid part of the calendar year through USAS disbursement and part of the calendar year through USPS and district wants the amount to appear on the W2 as wages but not in Box 14 as Fringe Benefits:

Option #1

  • Determine the amount paid through USAS Disbursement.

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

     

  • Before the last pay of the calendar year, enter the withholding 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 increase the Total and Applicable (taxable) Gross amount on the Federal, Ohio, OSDI, city and Medicare records (if applicable) by the amount paid through USAS disbursement:

  • Repeat this process for State, OSDI and Medicare records as well.

 

Scenario 6

If paid part of the calendar year through USAS disbursement and part of the calendar year through USPS and district wants the amount to appear on the W2 as wages and in Box 14 as Fringe Benefits:

 

Scenario 7

District has paid the amounts through USAS disbursement and does not want anything on the W2:

  • No action is needed

Non-Cash Amounts for W2 Reporting

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.

Scenario 2

If the Non-Cash Taxable Benefit Pay Type was not used during a payroll and the district wants the amount to appear on the W2 as wages and in Box 14 as Fringe Benefits:

  • 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 City withholding is needed, calculate the amount of City Tax as it applies to the total.

  • Manually increase the total and applicable (taxable) gross amount on the Medicare records: 

  • Repeat the same process for OSDI and City records 

  • To add employee Medicare Amount Withheld and Board Amount of Payroll Item (district will pay for both or ask employee for reimbursement)

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      • Click 'Create'

      • Employee - Find employee by typing in a few characters of first or last name

      • Payroll Item - Choose Medicare Tax 

      • Type - Choose Board Amount of Payroll Item

      • Transaction Date - Enter or choose date from calendar

      • Amount - Enter in the Board Amount of Medicare

      • Description - Enter in a description (optional)

      • Click 'Save'

  • OR if fully paid by Board:

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      • Click 'Create'

      • Employee - Find employee by typing in a few characters of first or last name

      • Payroll Item - Choose Medicare Tax 

      • Type - Choose Board Pickup Amount of the Payroll Item 

      • Transaction Date - Enter or choose date from calendar

      • Amount - Enter in the Board Pickup Amount of Medicare (1.45%) This will update both Medicare Pickup and Medicare on the employee's W2

      • Description - Enter in a description (optional)

      • Click 'Save'

  • Enter the amount as a Fringe Benefit on the Federal record: (this will update the Federal and State Total and Applicable Gross amounts)

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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 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'

Scenario 3

If '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, the following would need to be done, if the district wants the amount to appear on the W2 as wages and NOT in Box 14 as Fringe Benefits:

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    • 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.

  •  

  •  

  •  

    •  

      • Click 'Create'

      • Employee - Find employee by typing in a few characters of first or last name

      • Payroll Item - Choose Medicare Tax 

      • Type - Choose Board Amount of Payroll Item

      • Transaction Date - Enter or choose date from calendar

      • Amount - Enter in the Board Amount of Medicare

      • Description - Enter in a description (optional)

      • Click 'Save'

  • OR if fully paid by Board:

  •  

  •  

    •  

      • Click 'Create'

      • Employee - Find employee by typing in a few characters of first or last name

      • Payroll Item - Choose Medicare Tax 

      • Type - Choose Board Pickup Amount of the Payroll Item 

      • Transaction Date - Enter or choose date from calendar

      • Amount - Enter in the Board Pickup Amount of Medicare (1.45%) This will update both Medicare Pickup and Medicare on the employee's W2

      • Description - Enter in a description (optional)

      • Click 'Save'