Yes, it's a part of the Payroll Formula that the Employee would be using for their 401k Employee and Employer Contribution.

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

Our pay type called Bonus was not pre-taxed for 401k purposes and withheld too much federal and state taxes.  I called Sage Support and they said that added pay types such as Bonus are not setup in Sage to be pre-taxed and if you set Bonus up as a benefit, it does not get added to the gross wages.  Has anyone had trouble with adding pay types and they not be able to be pre-taxed for 401k purposes?

Employee Fields are automatically added to the system as post-tax, and not included in additional calculations such as 401k deductions, unless you adjust the ADJUST settings for a particular tax or the 401k deduction. To include the additional income for 401k deductions, you'll need to go into the Default Settings for Employees and on the Employee tab, click the ADJUST button next to the 401k Deduction. There, you can check mark the additional income, i.e., Bonus, on the left side of the screen, to include this income when calculating the 401k deduction. Please note that if your Employees are not using Default settings for the 401k Deduction within Maintain Employees, you will also have to correct the ADJUST setting within the Employee Records also.

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