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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..
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.
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.
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?
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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