Payroll deduction taken out of business expense but it is not a Based On pay code

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Posted on by CRUIZ2020

We have an employee that has 100% of gross wages going to 401k. Our deduction code is set up as Percent of Gross Wages Deduction Tier Single 100% but we have it Based on Selected pay codes. Our business expense pay code is NOT included as one of them. Her last few paychecks have her entire check going into the 401k deduction even though we have some reimbursement amounts on the business expense pay code.

The expense pay code is a Business Expense pay type and is not subject to any taxes. It also does NOT have the Report as Wages box checked.

The deduction code has nothing checked under Tax Sheltered From.

I checked the UPR00501 and the business expense pay code is not one of the Selected Based On pay codes listed on the table either.

Is it simply because we have 100% of gross wages? Shouldn't it then look at the based On pay code selection?

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Microsoft Dynamics GP

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Terry R Heley Microsoft Employee on at

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RE: Payroll deduction taken out of business expense but it is not a Based On pay code

Yes, I could see issues like this happening if you are doing 100 percent as such.

I would do something like 98 or 96 percent and see if that works better for you to leave room to take the deductions without dipping into the BE like it is doing.

Let me know if you need anything else, thanks

Terry Heley

Microsoft