Read the descriptions carefully.  Not all choices add to the employee's pay, and not all choices are taxed the same.

The order of the Adjustments to Income fields determines which item changes the paycheck first.

•If you have Section 125 as Adjustment 1 and Retirement as Adjustment 2; the Section 125 amount will be removed from the gross pay and retirement will be calculated on the remainder.

•If you have Retirement first and Section 125 second; Retirement will be calculated first, Section 125 second.

Not Used

•Turns off the selected field.

401K Plan

•Retirement contributions exempt from state (except PA) and federal withholding.

•This amount will automatically be withheld from the employee's net pay in the Retirement deduction.

•For the item to work properly, Retirement must be one of the deductions types used in the Paycheck Deductions.

•See the Retirement Setup topic for more detail.

Auto Allow

•Auto Allowance.

•A reimbursement for the documented (accountable plan) use of an employee's automobile.

•This amount is added to the net pay, with no deductions taken and no taxes deducted or paid on the amount.

•If your auto allowance plan is not tax exempt to the employee, add their auto reimbursement as Other Income, not as Auto Allowance.

Bonus

•Added to taxable gross pay.

•See the Bonus Pay topic for more details.

Cafeteria

•An alternate name for Section 125.

•See technical note below.

Commissions

•A dollar amount added to taxable gross pay.

Exp Reimb

•Expense Reimbursement.

•A reimbursement for employee paid business expense.

•This amount is added to net pay with no deductions taken and no taxes deducted or paid on the reimbursed amount.

Piecework

•A dollar amount added to taxable gross pay.

Retirement

•401K Plan with a different name.

•See 401k description above.

Sect 125

•Section 125, also known as a Cafeteria Plan.

•See technical note below.

•This amount is deducted from gross pay before most taxes are calculated.

•For each employee, a fixed amount or percentage can be set on the Employee screen.

•See the Section 125 Setup topic for more detail.

Tips Decl

•Tips declared by employee.

•Enter the total amount of tips reported by the employee - amounts the employee has already received and amounts you are adding to the net pay for this check.

•See the Tips Setup topic for more detail.

Other Inc

•Other Income.

•A dollar amount added to taxable gross pay.

•This provides a nice, non-specific, place to add any additional pay.

•Can be used if the employee has multiple pay rates.

•Calculate the total earned and enter the dollar amount into this field.

•If you have more than one type of Other Income, you can setup multiple Other Income fields by choosing 'Other Inc 1', 'Other Inc 2', etc.

•The heading for 'Other Inc' can be edited as desired.

•Use caution when changing the heading as 'Other Inc' amounts are added to the gross pay no matter what is entered as the heading.

PTO-A, PTO-B

•Paid Time Off

•Selecting these items enables PTO earning and payments.

•Refer to the Paid Time Off topic for more details.

Sect 132

•Section 132.

•Professional Edition only.

•See the Professional Edition Notes for more details.

FFCRA PTO

•Families First Coronavirus Response Act Paid Time Off

•See the FFCRA topic for more details.

RROP Inc1, RROP Inc2

•Amounts which are subject to Regular Rate of Pay (RROP) calculations.

Note

•A Section 125 plan is a separate written plan maintained by an employer for employees following the specific requirements and regulations of Section 125 of the Internal Revenue Code.

•It may provide participants an opportunity to receive certain benefits on a pretax basis.