We are working on upgrading from Sage 2016 to Sage 2018 but need to solve a problem before we upgrade. Our company gives each employee who selects the HSA qualifying health plan a non-cash fringe of $75 for their HSA. This is an "in and out" item in payroll - the employee is paid $75 then it is deducted to be deposited into their HSA account. In Sage 2016 we use an earnings code of type Fringe to pay the employee, then the Fringe Benefit deduction code to deduct it (when the earnings code is entered in payroll data entry Sage 2016 automatically applies the Fringe Benefit deduction). The earnings code is set up to be subject to state taxes but not federal, as HSA deductions are post-tax in California. I have spent many hours "testing" the Sage 2018 tax rules and do not wish to waste any more time. Sage Support has no clue what each tax rule does. Does anyone know what Compensation Tax Rule in Sage 2018 taxes for state but not for federal? Or is there some other way to set up the compensation and deduction for this non-cash fringe benefit (that will also report properly on a W-2)?
293
370
