Setup: Payroll Fringe Benefit Dictionary

The Fringe Benefit Dictionary stores the fringe benefits that are used in the union table. The Fringe Benefit ID, Description, Account and Paid By are setup in this screen. To set a rate for the fringe benefit, the fringe must be inserted into a union table. See Add a Fringe Benefit for more information.

This screen can be accessed by selecting Setup > Accounting Options > Payroll > Fringe Benefit Dictionary. It can also be accessed by right-clicking the PR menu icon.

ID

This is the number of the Fringe Benefit.

Description

A description of the Fringe Benefit is given here. For example: Health & Welfare

Account

A General Ledger Account number should be indicated to accrue the liability for this fringe benefit.

Paid By

Either the employee or the employer may pay this fringe. The Paid By column acts as a default when the union rate table is set up. For example: It does not mean that all health and welfare fringes must be employer-paid tax, if so indicated in the table. It indicates the normal status for this particular fringe.

Add or Change (button)

These buttons are used to Add or modify the Fringe Benefit information. Press the Add button or highlight the desired fringe Benefit and press the Change button. For more information, see Adding or Adding a Fringe Benefit

Delete (button)

Press the Delete button and the following screen comes into view. Press the Yes button and the highlighted record will be deleted and the previous screen comes into view. If the No button is pressed, the program returns to the previous screen.

Close (button)

This button closes the program and returns to the Main screen.

Adding or Changing a Fringe Benefit

Press the Add or Change button and the following screen will come into view.

Fringe ID

This is the ID number of the Fringe Benefit

Description

A description of the fringe benefit is given here. For example: Health & Welfare

Account

A General Ledger Account number should be indicated to accrue the liability for this fringe benefit. Press the lookup button and the General Ledger Accounts screen will come into view. Choose the correct account and press the Select button. The program will return back to this screen.

Paid By Employer (radio button)

Either the employee or the employer may pay this fringe. If the employer pays this fringe to the union, it may be taxable or non-taxable to the employee. If the employer pays the fringe directly to the employee in cash, the fringe may or may not be subject to Worker's Comp. Insurance. The paid by column acts as a default when the union rate table is set up. For example: It does not mean that all health and welfare fringes must be employer-paid tax, if so indicated in the table. It indicates the normal status for this particular fringe.

Paid By Employee (radio button)

Either the employee or the employer may pay this fringe. If the employee pays this fringe to the union, it may be taxable or non-taxable to the employee. The paid by column acts as a default when the union rate table is set up. For example: It does not mean that all health and welfare fringes must be employee-paid tax, if so indicated in the table. It indicates the normal status for this particular fringe. If the fringe is employee-paid, it is deducted from the employee's wage.

Paid to the Employee (check box)

This indicates Paid directly to the employee.

Taxable(check box)

This indicates the fringe is subject to state and federal taxes.

Subject to Worker's Comp (check box)

This indicates the fringe is subject to worker's compensation insurance.

Deduction Number

This is the number used by the system for extracting fringe benefit money from the paycheck. Any existing Deduction number may be used.

There are two occasions in which the Deduction number will be used.
 1. If this Fringe Benefit is employee paid, the deduction number is used for taking the Fringe Benefit out of their pay. For example: The employee pays $50.00 a pay period for Union Dues.
2. If this is a taxable fringe, the Fringe benefit is added to the gross pay and taxed then deducted from the paycheck using this number. For example: If the employee has $0.10 an hour accrued for Vacation pay, the $0.10 would be added to the employees gross pay and taxed then deducted from the paycheck.

Print Fringe Accrual on Check Stub (check box)

Select this option to include Week to-Date and Year to-Date accruals of this fringe benefit on the employee's paycheck.

Check Stub Abbreviation

If the fringe is to appear on the check stub, enter the abbreviation for the fringe benefit that will be used on the check stub.