To create a code that is non-taxable as a reimbursement (add to pay), you will create an earning code that is not subject to tax and does not appear on any tax returns. Be sure to create new codes after you post a payroll but before you select pay period for the next pay period.
How to create the code:
- Select 'Setup > Payroll Settings > Payroll Categories'
- Click the '+' button in the upper right corner of the Payroll categories window
- Select 'Earning' from the menu
- Enter the descriptive information for your new code; Code, description and abbreviation
- If the code is going to be a dollar amount, choose 'Regular'. Choose other types as needed
- Click 'Unselect all' in the lower right corner of the screen to clear all of the tax boxes.
- Select the 'Form Assignments' tab and ensure that nothing is checked.
- Click the check mark in the upper right corner of the screen to save the new code.
- Add the code to all employees when the dialog appears or add it one at a time using the Master Paycard screen later.
- To Add using the Mater Paycard Go to Employees> Mater Paycard > Select the employee > Click 'Earning' tab then Add the payroll category by button 'Add Earning' at the bottom right corner, make sure for this payroll category the box is flagged and save it at the top right corner by the button '+'
You can use this code moving forward, and put amounts into the master paycard screen under 'Earnings' for each employee.
