21st Century Accounting Help - Payroll/Configure

Noncash Benefits

In the Payroll/Configure/Noncash Benefits window, you set up an unlimited number of noncash benefits available to the employees of the company. Noncash benefits are not added to gross pay, but may be subject to tax or included in the calculation of deductions or other benefits. The 21st Century Accounting shorthand term for all types of noncash benefits is "pay factors."

Configuring noncash benefits

Depending on the benefit contribution method, you can set up period ceilings and floors, an annual ceiling, the calculation (earnings) base for percentage benefits, the rate or flat amount, and whether to add the benefit before or after calculating taxes.

Assigning noncash benefits to employees

You can assign a noncash benefit to all employees when you configure the noncash benefit. You can also assign noncash benefits to (and remove them from) selected employees in the Payroll/Configure/Employees window, where you also customize noncash benefits for individual employees, if necessary.

Posting noncash benefits

The system calculates noncash benefits when you process Payroll for the employee. Taxable noncash benefits are added to gross pay for tax calculation.

Noncash benefits are not posted to the general ledger. If you select the option to departmentalize a noncash benefit, the system associates and reports the data generated by the noncash benefit with the employee's department(s).

If the company is configured to departmentalize pay factors by account segment and to allow manual distribution, and noncash benefits are configured to post to the employee's departments, when you process Payroll, you specify departments as well as G/L accounts in the manual distribution window. The system then distributes noncash benefits to departments in the same proportions as you distribute earnings.