How to add a pre-tax retirement benefit
To add a pre-tax deduction, go to Payroll → Setup → Deduction/Benefit List; you will see options from which you may select your Deduction item. If there are no appropriate options listed, click the Add a New Deduction/Benefit From Template link.
Add a New Deduction/Benefit from Template
Once you have selected the item from the Add a New Deduction/Benefit from Template screen, it will be available to edit on the Deduction/Benefit List screen. Click the Edit button to the left of this new Deduction/Benefit and update any field to hone it to your needs.
IMPORTANT - it is important to note that the Type (Deduction or Benefit) should not be changed as the checked boxes work opposite to each other.
- The checked boxes on a deduction will reduce the tax liability (pre-tax) as stated in that section. "This deduction will reduce the following checked taxes. When the checked taxes are calculated, the taxable wage amount used will be reduced by the amount of the deduction."
- While a Benefit will increase the tax liability for the checked boxes (post tax) as stated in that section. "The amount of this benefit will be added to taxable wage amounts when calculating the checked taxes below, thereby increasing the amount of tax."