Company % deferred compensation taxing

Hi. Deferred compensation has always been a flat dollar amount per pay that the company contributed and a PR30 record for a non-cash payment was setup for the same dollar amount so that the appropriate employee taxes were withheld. They now have some where the contribution amount is a percentage not a flat dollar amount. So can vary from pay to pay. Payroll does not know of a why to automate the the PR30 so that it can calculate a percentage.

Does anyone have a percentage deferred compensation plan setup that they are required to withhold employee taxes on it? If so, how do you have it set up for the non-cash payment so it calculates at a percentage?

Thanks

Sylvie

0712131256598360.doc

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unknown

When we recently set up our new deferred comp plan we have a match attached. In order to tax that company match amount we had to set up the PR05 on the taxes tab with a 30 in Tax Status box. Once we did the system calculated the FICA and medicare tax on the company match. Not sure if that will help you or not but you can give it a try.

Sylvie Vincenti

Thank you... Ours is not a match plan, but may still work the same. I will talk to our payroll department and see what code they have on the deduction. So this code has the FICA and medicare tax showing under the employee taxes, correct? Not under company paid taxes?

unknown

it sets up both sides as it should for a deferred comp contribution that is a fully vested company contribution. You will see it for the employee and the employer.

Sylvie Vincenti

Thank you....

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