Intro – Benefits #
Benefits are the additional forms of compensation or perks that employees receive from their employers, beyond their regular wages or salaries. It includes retirement plan, health insurance and other allowance aimed at improving overall well-being, financial security, and job satisfaction of employees.
Create a New Benefit #
- Go to Payroll on the left sidebar, and select Benefits
- Click Add New button.
- On the Add New benefit page, fill in the following fields
- Benefit Name: Enter a unique benefit name.
- Employee Contribution:
- % of Gross Pay: Enter percentage of employee’s gross pay per pay period.
- Fixed Amount $: Or you can enter the fixed amount contribution per pay period.
- Annual Maximum: Enter the annual limit for employee contributions if any.
- Employer Contribution:
- % of Gross Pay: Enter percentage of employee’s gross pay per pay period.
- Fixed Amount $: Or you can enter the fixed amount employer’s contribution per pay period.
- Annual Maximum: Enter the annual limit for employer contributions if any.
- Pre-tax Deduction: Check this option if benefit is taken from an employee’s gross pay before federal, state, and local income taxes, as well as social security and Medicare taxes (FICA), are calculated.
- Liability Account: Tracks the amount the company owe to a benefit vendor.
- Expense Account: Track employer’s contribution as payroll expenses.
- Click Save
