I have a payroll question related to fringes and employee IRA contributions.  This is a simple IRA and is taken before taxes.   I have the fringes set up as a benefit on the appropriate paygroups with an offset for each employee based on the benefits we provide as a company.  The issue I am having is that in order for there to be no taxes held on the employee IRA contribution I have to set the calculation up with the calculation method of 1 - % of gross pay (unadjusted); however if I do this the "adds" or the fringes are not considered as part of the gross pay and therefore not considered when taking a percentage of the employee's salary.  For example if the employee's salary is 1,000 and the fringes are 700, the employee's % of withholding for their IRA contribution is only figured on the 1,000 and not the 1700.  If I set the calculation up using the calculation method of 2-% of total taxable wages, it calculates the employee contribution correctly, but it does it after tax, so the correct tax amounts are not withheld.

Anyone have a solution or thoughts on how I can set this up?

Thanks!