Fringe benefit

SUGGESTED

We are a PEO processing payroll for site clients, a new joint employee will be recieving a $300 month stipend for home office.  How will that post through payroll as a fringe benefit?  Subject to Federal and State tax but no FICA for EE or ER? 

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  • 0

    You will need to change the Adjust settings for your Tax Categories and check mark the new stipend to be included, if you want that particular tax to deduct from those moneys along with Gross, as check marked items together create Adjusted Gross. For taxes that should not be taken on those moneys, there is nothing further that you need to do, as long as the stipend wasn't set up as a Pay Level and instead set up as an Employee Field.

    Tammi M. Ermerins ([email protected])

    Certified Sage 50/Peachtree Accounting & Crystal Reports Consultant & Trainer

    800-780-0700 / 954-961-0600, Visit Us on the Web at https://pcosupport.com

  • 0 in reply to termerins

    Fringe benefit regarding paying monthly life insurance premium, in researching IRS website this $ is subject to payroll tax(FICA,Fed and St)please confirm?  Is the fringe benefit subject to Employer SS and Mcare tax??  

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