A tax rule must be entered in Deduction Code Maintenance for each deduction code that has either Pension Plan or Cafeteria Plan selected as the deduction type.
The table below lists the tax rules that may meet your business needs for various pension and cafeteria plan deduction codes.
Note These tax rules are provided as examples. Sage cannot and does not guarantee the applicability of any tax rule to your circumstances. Before processing payroll for your employees, test all tax rules to make sure the calculation provides the expected results. For specific tax advice, see your professional tax service provider.
Deduction Description Tax Rule Tax Rule Description Notes 401K Employee -805002 Section 401(k) EE Deduction Reduces applicable wages Health Insurance -HSA -805082 Health Savings Account - Cafe EE Deduction Reduces applicable wages Health Insurance -HSA -805086 Health Savings Account EE Deduction Does not reduce applicable wages Health Insurance -FSA -805078 Health FSA Code DD Deduction EE Deduction Reduces applicable wages Dependent Care -805074 Qualified Dependent Care EE Deduction Reduces applicable wages No Impact on Wages -000000 No Wages Reduced Does not reduce any wages (for example, dependent care benefits that are over the allowable limit)
