1. UPDATE .IRS BAL BEFORE USING .IRS LEVY.
After you add .IRS LEVY to your system, you must proceed to the Processing, select Periodic Processing, select Update Data Items From Toolbox task and update the new .IRS BAL data item. This will ensure that references to .IRS LEVY, contained in .IRS BAL, are acknowledged.
If you do not update .IRS BAL before you process a payroll that includes .IRS LEVY, you will receive an error (Error 153) when you calculate net pay. If you receive this error during the calculate net pay and the payroll includes an employee with .IRS LEVY, perform the above update to .IRS BAL and calculate net pay again.
2. TAXABLE BENEFITS.
There are two types of taxable benefits that are calculated by FundWare:
• TAX BENE—Benefit data items that are accumulated by TAX BENE are added to an employee’s state and federal taxable wages and wages subject to income tax withholding. Withholding is performed on the total taxable wages.
• NOTAX BENE—Benefit data items that are accumulated by NOTAX BENE are added to an employee’s taxable wages only for federal withholding and certain states (currently AL, CA, CO, IA, IN, ID, KY, LA, MI, MN, MT, NE, NJ, NY, OH, OK, OR and VT; others are scheduled to follow).
See IRS Publication 15-B Employer’s Tax Guide to Fringe Benefits or contact the IRS for complete instructions on your responsibility to withhold income tax on fringe benefits.
Taxable benefit items must be added to either TAX BENE or NOTAX BENE—not both. See the PYSETUP Setup List for instructions on how to add a data item to TAX BENE or NOTAX BENE.