You'll need to set up 3 payroll items to create a zero net paycheck and account for the taxes.
Step 1: Set up a PUCC Company Contribution item
- Go to Lists, then Payroll Item List.
- Select Payroll Item â–Ľ dropdown, then New.
- Select Custom Setup, then Next.
- Select Company Contribution, then Next.
- Enter the item name, such as PUCC, then Next.
- In the Liability account and Expense account fields, select the expense account that you want to track the item. Select Next.
- Select Fringe Benefits, from the Tax tracking type â–Ľ dropdown.
- Select Next twice, then Finish.
Step 2: Set up a PUCC adjustment item
- From your Payroll Item list, select New Payroll Item.Â
- Select Custom Setup, then Next.
- Select Addition, then Next.
- Enter PUCC Adjustment as the payroll item name, then select Next.
- Select Payroll Expenses, then select Next.
- Select Compensation as the tax tracking type, then select Next.
- Select Next twice, then Finish.
Step 3: Set up an employee advance addition item
- From your Payroll Item list, select New Payroll Item.Â
- Select Custom Setup, then Next.
- Select Addition, then Next.
- Enter Employee Paid Tax advance as the payroll item name, then select Next.
- Select Payroll Expenses, then select Next.
- Select None as the tax tracking type, then select Next.
- Select Next twice, then Finish.
Step 4: Add the item to the employees profile
- Select Employees, then Employee Center.
- Double-click your employee’s name.
- Select Payroll Info.
- In the section for Additions, Deductions, and Company Contributions, under Item Name, add your PUCC payroll item.
- In the Amount column, enter the amount per paycheck to take out. In the limit field, enter the total premiums for the whole year.
- Select OK.