Hi, We are processing a gift card in the biweekly pay cycle which has created net zero checks. They do show up on the PR140 error report. Will these generate the check or will we have to process them as manual adjustments?
are the net zeros showing for all employees or just some. Since this amount i am guessing is just being added to the employee record for taxation you can let them go through and those that have net zero will be on the PR297 error report for arrears for Social security and medicare taxes. This is fixable by the employee getting paid at a later date or you will have to process a adjustment for the employee portion of taxes and offset it with a employer paid employee fica tax deduction code similar to the wash. andrea.silva@bannerhealth.com if you would like further info. i would be happy to share;
We are attempting to gross these up. We created a cash code for the full gross amount and a deduction code for the physical amount of the gift card. This way we are recording the income and netting the check to zero so that no employee actually get's hit with the expense or income. Thoughts.
Hey Colleen,
That is really clever! So this would be similar to the GTL calculation to gross up the employee's wages for that benefit. In other words it is a taxable fringe benefit.
I cannot think of an issue with this method. This could probably be automated through BN150 - Employee Life if the same group of employees receives the benefit each time.
I believe a check/stub would print for the employee if they are receiving a net-zero check. It would be similar to an employee being issued payment for GTL that ultimately nets out to zero.
