Process Wellness Incentive for Employees

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Our new insurance program offers employees incentives where they can redeem points earned for gift cards.  We are trying to work out a way for us to report their redemptions on W-2 forms.  Our CPA says it needs to be entered in box 1 as a fringe benefit and we should set it up as an other pay in BW.  I'm just a little confused as setting it up as an other pay would require paying the amounts, which we shouldn't be doing as we are simply recording their redemptions and not actually paying anything.  Thoughts?

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  • +1
    verified answer

    mhartman-

    Please see our Knowledge Base article #20995 "How to process Fringe Benefits (Frequently Asked Questions).  This article explains your options for setting up an Fringe Benefit is BusinessWorks.  In here, you do not set up an Other Pay, but a Deduction - BUT for Category you select "Company-Ind" - meaning a 'company paid' deduction.  When set up as a company paid deduction, nothing is deducted from the employees check but the company's contribution is accounted for.  To access the Knowledge Base go to www.SageKB.com.

    Thanks,

    Coleen

Reply
  • +1
    verified answer

    mhartman-

    Please see our Knowledge Base article #20995 "How to process Fringe Benefits (Frequently Asked Questions).  This article explains your options for setting up an Fringe Benefit is BusinessWorks.  In here, you do not set up an Other Pay, but a Deduction - BUT for Category you select "Company-Ind" - meaning a 'company paid' deduction.  When set up as a company paid deduction, nothing is deducted from the employees check but the company's contribution is accounted for.  To access the Knowledge Base go to www.SageKB.com.

    Thanks,

    Coleen

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