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Microsoft Dynamics GP (Archived)

GP 2010 Payroll Benefit Setup Question

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Posted on by 75,730
We have a student intern who will have a meal plan while she works for us and is paid as well. According to the law, we are to tax the portion of that meal plan that she benefits from outside of work (weekends, off shift, etc.). This is to appear in box 2 of her w-2 – what I cannot seem to figure out is how to put this through payroll and tax it as it is not a payment – but a benefit and it must show in box 1……with a notation in box 14 of what it is. Is it as simple as putting it in as a benefit (create new benefit) and then put box 1 in the w-2 box label on the benefit screen – but then how do we add a note in box 14 too? This just came in form one of our clients. Apparently this intern will get meals even when not working and those meals have tax withheld, whereas the meals that are provided while working are not taxed. How would you go about setting this up.

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  • Richard Wheeler Profile Picture
    Richard Wheeler 75,730 on at
    RE: GP 2010 Payroll Benefit Setup Question

    I should mention no payment is ever made to the employee. They are using their meal card to purchase the meals. The amount is debited against their meal account..

  • Richard Wheeler Profile Picture
    Richard Wheeler 75,730 on at
    RE: GP 2010 Payroll Benefit Setup Question

    In this case, the value of the meals that are provided when the employee is not  working is what will be considered the benefit and this amount will be taxable. Meals provided while they are working are not taxable.

  • Suggested answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: GP 2010 Payroll Benefit Setup Question

    In Canadian Payroll: (maybe similar in US)

    If no payment is being made directly to the employee use benefit code to record the amount of the benefit and the % of the benefit that is taxable. If you are not paying the intern cash for this benefit then use a separate offsetting deduction pay code to net this against the expense account used for the benefit code.

    I assume the end game is to record the taxable benefit without paying cash out directly to the intern.

  • Richard Wheeler Profile Picture
    Richard Wheeler 75,730 on at
    RE: GP 2010 Payroll Benefit Setup Question

    Leslie,do you mean that since we click that it is taxable, that puts it in box 1 and then on the benefit screen we put box 14 on that benefit tab  and that is where the comment will go?

  • Verified answer
    L Vail Profile Picture
    L Vail 65,271 on at
    RE: GP 2010 Payroll Benefit Setup Question

    Richard,

    What you really have here are 2 different benefits. One is taxable, one is not. If you approach it with that in mind, you can see the solution is simple.  The system needs a way to know how much is taxable and goes in wages (and therefore in Box 1), you can also enter Box 14 in the benefit screen and put the wages in another box with an appropriate notation. The fact that it is subject to Fed tax automatically gets it in box 1.

    The amount that is a nontaxable benefit needs to be set up separately. It's not subject to Fed tax, so it won't go in box 1. If you want it in a box, put that on the benefit setup screen in the W-2 box fields.

    Kind regards,

    Leslie

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