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[Tamara Sullivan]

In April’s payroll, I’m processing taxable fringe benefits and payroll. The regular payroll is taxed using the W-4 and the taxable fringe benefits are taxed as supplemental wages using a flat tax rate of 25%. After calculating and reviewing, it appears that all wages and taxable fringe benefits are being taxed by the W-4 information. I’ve manually calculated the taxable fringe benefits and know the expected amount of tax at the 25%. However, the final federal withholding amount is about $50 less.

Does GP allow for two different tax rates – one for a paycode and one for a benefit code? I want to verify that what GP is calculating is correct.

Thanks for your help.
Tammy

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Tamara Sullivan
Senior HR Generalist
H&W Computer Systems, Inc
Boise ID
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[Tom Franz, CPP]

Tammy,

Yes, Dynamics supports having a separate “Flat Tax Rate” for employee wages and benefits. On the Employee Benefit Maintenance window (which may be defaulted or rolled down from Benefit Setup), you can specify the 25% flat tax rate. The Calculate Checks process will then tax wages for the appropriate taxable benefit/pay code accordingly.

Hope this helps!

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Tom Franz, CPP
Client Engagement Manager
Integrity Data
Lincoln IL
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[Tamara Sullivan]

Hi Tom,

Thank you for your assistance. I appreciate it very much. I think I have it working.

Thanks again.

Tammy

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Tamara Sullivan
Senior HR Generalist
H&W Computer Systems, Inc
Boise ID
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