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"The Benefit Cannot Be Taxable" Error Received When Setting Up Payroll Posting Accounts

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Posted on by PattiK323

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We have set up some new taxable benefit accounts, to reflect the STD premiums that we are paying for employees [by reporting as a taxable benefit each pay period, any related STD benefits received by the employees will not be subject to payroll taxes, as they will have already paid taxes on the premiums], as well as the HSA Contribution that we are making to officers [unlike the HSA contributions made to regular employees, the contributions to officers are subject to tax (except FICA/Medicare)].

However, when I go into Tools>Setup>Payroll>Posting Accounts to specify the Benefits Expense and Benefits Payable accounts that these should be mapped to, I get an error saying "The Benefit Cannot Be Taxable."

Why am I getting this error message? Why can't I set up account mapping for these benefits? Even if they are taxable to the employee, we, as the employer, need to report the corresponding expense and liability.

Thank you.

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Microsoft Dynamics GP

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PattiK323 245 on at

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RE: "The Benefit Cannot Be Taxable" Error Received When Setting Up Payroll Posting Accounts

Thank you. I realized this after I posted my questions. I then went in and deleted my question, or so I thought!
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Cheryl Waswick on at

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RE: "The Benefit Cannot Be Taxable" Error Received When Setting Up Payroll Posting Accounts

In the Payroll posting account list, there are 2 sets of options for the Benefits expense and Benefits Payable, so if any of your benefits are taxable, then use the 'taxable benefits expense/payables' options instead: (You are likely trying to add a taxable benefit to the top 2 options, and need to use the bottom 2 options:)

--benefits expense (dr)

--benefits payables (cr)

--taxable benefits expense (dr)

--Taxable benefits payables (cr)

Please mark as answer if this helps.

Thanks

Cheryl W

Microsoft Dynamics GP Support