Recieved a request on changing the way that a TSA deduction (in this case a 403(b) plan - which is similiar to 401(k))
In a nut shell, they want to have the deduction be (Total Wages-Insurance-FICA taxes) * percent vale of deduction = deduction amount. This would be my scenario 3 listed below.
Most of my payroll clients follow Scenario 1 (Total Wages*percent value of deduction)=deduction amount, but I have also seen Sceneario #2 listed below (Total Wages-Insurance) * percent value of deduction = deduction amount. (I have never set that one up in GP either)
What I am looking for is the best way to configure Scenario #3 in GP 2010. I looked at using the earnings codes but a TSA deduction cannot be calculated on a percent of earnings wage record.
Any other ides.
Thank you.
| Non-Taxable | FICA | Federal | ||||
| Sec 125 | Taxable | Taxable | ||||
| Wages: | Insurance | 403(b) | Tax Sheltered Annuity Deduction | Wages | Wages | |
| Scenario 1 | 1,000.00 | 200.00 | 12% | $1000.00 * 12% = 120.00 | 1000.00-200.00=800.00 | 1000.00-200.00-120.00=680.00 |
| Scenario 2 | 1,000.00 | 200.00 | 12% | ($1000.00-200.00 =800.00)* 12% = 96.00 | 1000.00-200.00=800.00 | 1000.00-200.00-96=704.00 |
| Scenario 3 | 1,000.00 | 200.00 | 12% | ($1000.00-200.00=800.00)*7.65% (FICA tax)=61.20 | ||
| 800.00-61.20=738.80*12%=88.66 | 1000.00-200.00=800.00 | 1000.00-200.00-88.66=711.34 | ||||