Hello, I have union employees who perform union and non-union work during any pay period, with different pay rate for each type. Union fringes are calculated on union hours worked (exception is admin dues, which is calculated 3% of gross Union wages). How do I create a single paycheck to show non-union wages and union wages but calculate the fringes on union wages only? I’m guessing that I would have to enter manually, which means I would have to go into the 12 pay items and change those to calculate manually any time the employee works both union and non union hours (Sounds like a recipe for paycheck disaster!) as these 12 pay items are currently set up to calculate on hours worked (Exception the 3% admin dues mentioned above, which I would also have to calculate on union wages).
Or, even worse, I could set up another identical 12 pay items and identify those as “manual” for those times when pay period consists if both union and non union hours.
Example: 28 hours union at $25/hr and 12 hours non union at $18/hour.
creating 2 paycheck would not calculate PR taxes correctly (ie, no federal taxes if only worked 8 hours at either wage level).
Thank you for reaching out to the Community. It's my priority to help you sort this out. You can create two additional payroll items. One for taxable and other one for non taxable. Let me guide you how:
Click the Lists menu, choose Payroll Item List.
Tap the Payroll Item button and select New.
Select Custom Setup.
Hit either Company Contribution or Addition, and select Next.
Company Contribution: Adds the value of the fringe to be taxed but does not increase net pay
Addition: Adds the value of the fringe to be taxed and increases net pay
Enter a name for this item and select Next.
Press an Expense account and Liability account from the drop-down lists and select Next.
From the Tax Tracking Type drop-down list, choose Fringe Benefits and select Next.
Select Next twice (to bypass the Calculate based on quantity window).
Enter that default rate in the first section of the Default rate and limit window if the benefit will be a specific amount.
Put the amount of any limits on the item in the second section of the window.
Thank yo for your reply. I understand it partially.
Theres another matter with payroll.
Employee receives $40 a week vacation fringe or more or less it depends on hours worked ($1.00 / hr worked). That amount is added to gross and taxed. Then I need to deduct that amount ($40 or whatever amount) from net. How do I create the taxable vacation fringe company contribution pay item? And then deduct the $vacation fringe amount amount from net which gets sent to a benefit office for distribution in January of next year. I need 2 pay items—an add and a deduct.