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. If Employer Contribution is selected as the deduction type, the tax rule is optional.

The table below lists the tax rules that may meet your business needs for various pension and cafeteria plan and employer contribution 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)
401(k) Employer Amt	-805003	Section 401(k) ER Matching Contribution	Adds to applicable wages
401(k) Employer Amt	-805007	Section 401(k) Catch-up ER Contribution	Adds to applicable wages