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Payroll Item Tax Sheltered Annuity
Posted: Sat Jul 11, 2009 3:56 pm
by missbetty50
How do I create a transaction that will write a monthly check to the Annuity Company monthly and show the amount as an entry in Box 12 of the employee's W-2.
I'm new at this so all help is appreciated.
Miss Betty
Re: Payroll Item Tax Sheltered Annuity
Posted: Sat Jul 11, 2009 10:16 pm
by JohnDMeyers
Wow! There are a lot of steps to do this.
First, to have the amount show up in Box 12 of the W-2, you have to create an "Item Description" in the Payroll module and attach it to the "Employee Pay Item" for that employee.
I'm guessing the "Item Description" will be an Employer Liability, which means you have to create a liability account in Fund Accounting before creating the "Item Description" in Payroll.
After running the payroll, the amount will be tracked in the liability account until you cut a check to the bank, or wherever the annunity is held.
You can automate the check that is sent to the annunity company by using "Auto-repeating Entries" in the Accounts Payable module.
Like I said, there are a lot of steps to accomplishing this task.