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How to set up withholding for employer matching in EasyACCT

This article explains how to set up EasyACCT's contributions feature for employer matching.

To meet the automatic deduction requirements, an employer match is based on the employee's contribution.
There are two methods for setting up a contribution:
1. The contribution is reported as income on payroll checks and W-2s.
2. The contribution isn't reported as income.

How to set up the company contribution

Go to Batch Payroll, Update Company Files and select Employee Information.
Highlight an employee and select Edit Record.
Switch to the Contrib./Deductions tab.
If the employer's contribution isn't considered income (and won't appear on the check stub and W-2), use the DR Acct and CR Acct columns to select the accounts for general ledger posting.
If the employer's contribution is considered income (and will appear on the check stub and W-2):
- Set up a GP item for the contribution on the Wage/Withholding tab.
- Return to the Contrib./Deductions tab. In the GP field, select the GP item for the contribution.
Enter the payroll periods for matching.
- Generally, this is the same as the employee's periods for automatic deductions.
In the W/H field, select withholding 1-7 on which the match is based.
Enter either a percentage or a flat amount.
If there is an annual limit to the company contribution, enter the dollar amount in the Limit field. This balance will reduce each pay period until it reaches zero.
- Reenter the balance each year.

How to instruct EasyACCT to automatically calculate the contribution

Go to Batch Payroll, Process Payroll and select Payroll Check Computation.
Enter the Current Payroll Check Date to be Processed (this is the date that prints on the checks).
Enter the Pay Period Begin and End Dates.
The Current Pay Period for Contributions/Deductions fields trigger the calculation for the automatic deductions.
- For each period (weekly, bi-weekly, and semi-monthly) enter a number 1-5 that represents the current pay period being processed.
- For example, if it's the second week of the month, and the payroll is processed weekly, enter a 2 for weekly.
Check the box Create Automatic Transactions for Current Payroll Check Date.
Select the Pay Frequency and Employee Type.
Click Continue.
On the Payroll Transaction Entry screen, enter hours, additional pay items, etc, for the employees being paid.
Click Close.
Go to Print Checks/Advices and select Print.

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