How do I transact gift cards given to employees in Payroll so that these are properly recorded as taxable income but that there is no impact to the employees' net pay?
For example-if an employee is given a $50 gift card. Using supplemental rates of 22% Federal and 5.3% state, the grossed up amount is $76.86.
If I use a Pay Code of 50GC, for example for $76.86, the taxes will calculate automatically (assuming that the pay code is set up with the flat tax rates).
But, what do I do with the $50 remaining? I don't actually want the employee to get the $50 as additional net pay, as they've received a gift card for this value.
Conversely, if I do as a taxable Benefit, using a similar code and setup, the employee will be hit for the $26.86 in taxes, resulting in lower net pay than they should receive.
I'm not quite clear how to do this.
Thank you to anyone who is willing and able to help.
