Benefit Items

Use Benefit Items to describe each type of payroll benefit that you provide to your Employees. Benefit Items also handle employee contributions to benefit plans.

HINT-- Benefit Items are a useful part of the Goldenseal payroll software.

WEBSITE INFO LINKS
Payroll Software | Payroll Accounting Software

Entering Benefit Items

To enter a Benefit Item, follow these steps:

Choose Payroll Setup from the Costs menu, then choose Benefit Items from the submenu.
Click the New button, or click on an existing item and click the Edit button.
Fill in details about the item.

Data Fields

Enter the following information for each Benefit Item:

Name-- Type in a brief name for this benefit item. This is the text that will appear in clairvoyant fields.
Description-- Type in any comments you'd like to make about this item.
Benefit Type-- Use the pop-up menu to choose what type of benefit this is.
Amount-- Enter the cost of this benefit, and whether it is a percentage or a dollar amount.
Based On-- Choose the payroll base amount that is used to calculate this tax item.
With a Minimum Of-- If there is a minimum payment or deduction, turn on this checkbox, and enter the minimum amount per pay period.
Up to a Maximum Of-- If there is a maximum payment or deduction, turn on this checkbox, and enter the maximum amount and the period to which it applies.
Add To or Subtract From-- Choose the calculation stage where this tax item is subtracted.
Rounding-- Enter the way you'd like to round the final calculated value.
Start-- Enter when the benefit starts for employees.
Pay To Type-- Enter the type of account to which you make benefit payments.
Paid To-- Use the clairvoyant field to enter the account to which you make benefit payments.

Benefit Types

Use the Benefit Type field to specify the type of benefit that is being given. The benefit type determines how payment for the item is handled.

Allowances-- Use Allowances for money that the employer pays into an escrow account or holds on behalf of an employee. The employee can withdraw allowance funds at a future date.

Benefits-- Use these choices for non-cash benefits that the employer pays for, but that don't result in direct or indirect payments to the employee. Enter an item as a taxable benefit if the employee must pay tax on the value of the benefit. EXAMPLE-- Enter health insurance provided by the employer as a Nontaxable Benefit.

Contributions-- Use these choices for money that the employer pays into an escrow account or to a third party, on behalf of an employee. Contributions generally can't be directly drawn upon by the employee. EXAMPLE-- Retirement plans sponsored by the employer are Taxable or Nontaxable Contributions, depending on the specifics of the plan.

Deductions-- Use these choices for benefits that the employee pays for. Their costs are deducted from the employee's wages. EXAMPLE-- Employee health insurance payments are generally Nontaxable Deductions.
If a benefit is paid for by both the employer and the employee, enter it as two separate Benefit Items.

Payments-- Use these choices for benefits that are paid directly to the employee. Their cash value is added to the payroll amount paid to the employee. EXAMPLE-- Regular payments that you give to employees to cover travel, meals, child care or clothing are Taxable Payments or Nontaxable Payments.

NOTE-- When you reimburse an employee for specific expenses, enter it as a reimbursement.

Based On Field

Use the Based on field to determines the value that this calculation starts with.

Some of the options apply to Calculation Methods that are a dollar amount:
Per Pay Period-- For a fixed deduction per pay period.
Per Gross Hour-- Based on the total hours of labor, with overtime counting extra as specified in the Wage Schedule.
Per Straight Time Hour-- Based on the total hours of labor, with no adjustment for overtime.
Per Day Worked-- Based on the number of days worked.
Per Day in Pay Period-- Based on the number of days in the pay period.

Some of the options apply to Calculation Methods that are a percentage or tax table:
Gross Wages-- The gross wages are used as a base amount.
Straight-Time Wages-- The gross wages are used, minus any overtime amounts.
Adjusted Wages-- The adjusted wages choices allow you to determine the order in which Goldenseal calculates deductions. Use one of them if this tax is based on the amount after some other tax and benefit items have been subtracted.

Add To/Subtract From Field

Some benefit items are added to or subtracted from gross wages before other tax items or benefits are calculated. You can use the Add To/Subtract From field to set up the order in which Goldenseal calculates deductions.

No Subtraction-- The amount of this benefit has no affect on the Based On amount for other Tax Items.
Gross Wages-- The amount of this benefit will be subtracted from the gross wages after tax items that use Gross Wages have been calculated. The subtraction will reduce the base amount for all taxes that are based on one of the Adjusted Wages.
Adjusted Wages-- The amount of this benefit will be subtracted from the selected Adjusted Wage, after all tax items that use it have been calculated. The subtraction will reduce the base amount for all taxes that are based on later Adjusted Wages.

HINT-- Goldenseal won't allow you to enter an Add To/Subtract From value that happens before the Based On value.

Rounding

Enter one of the following methods for rounding the final benefit amount:

Fractional Pennies-- There will be no rounding. The value will be to the nearest hundredth of a penny.

Nearest Penny-- Round to the closest penny value. HINT-- This is the most common rounding method.
Nearest Dime-- Round to the closest ten cent value.
Nearest Dollar-- Round to the closest dollar value.

Up To Penny-- Round to the next higher penny value.
Up To Dime-- Round to the next higher ten cent value.
Up To Dollar-- Round to the next higher dollar value.

Down To Penny-- Round to the next lower penny value.
Down To Dime-- Round to the next lower ten cent value.
Down To Dollar-- Round to the next lower dollar value.

Using Benefit Items

To use Benefit Items, include them in a Benefit Package, and assign the Benefit Package to an Employee account or a Wage Schedule.

After you enter employee hours in Labor Hours records, use the Write Payroll command to create Payroll Records and paychecks. Goldenseal will automatically calculate benefit charges and deductions.