Does anyone do deferred compensation through payroll? We have some employees who do on call work, and have the option of deferring compensation. We have to pay the FICA on the compensation when it is funded, but other taxes are paid upon distribution.

I have set up an "other pay" with the OASDI and Medicare boxes checked.  For W-s, the deferred compensation box is checked, and Box 12 ID Y

I have set up a deferred comp deduction with FWT, OASDI, Medicare, and SWT checked.  At this point, I have def comp box checked as well as Box 12 ID Y.

With this set up, inputting the same amount for other pay and the deduction, seems to keep the federal and state taxes the same, and increases the FICA payment by the correct amount.

I am thinking that the W2 info for the deduction should probably be removed??

Does anyone have any input and/or suggestions for this?

Thanks!

Julie