15119: Entering Payroll Benefits (DAS)

All benefits must first be entered for the employer and then assigned to each employee, as needed.  A benefit cannot be deleted from the employer’s list if it is setup as a benefit for one or more employees. There is no limit to the number of benefits that may be set up for the employer.

Watch the Deductions and Benefits video for a demonstration.

Employer Setup: 

1. From the Drake Accounting^® home window, select Deductions & Benefits from the Employees menu. Select the Benefits tab towards the upper left of the window.

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1. Select the New  button. The entry fields are activated.  
2. Enter the basic benefit information:
   • Name: This is the name of the benefit (not the employer or employee).  Some examples are:
     • Clergy - Housing Allowance
     • Vehicle Lease
   • Account: Select the drop box to access the postable accounts list from the Chart of Accounts, if the bookkeeping function is used.
   • Amount: Enter an amount for the benefit. 
     • For a dollar/cents amount, format the number as dollars and cents.
     • For a percent, enter the amount as a decimal value less than 1 (example: 5% = 0.05).
   • Ceiling:​ Enter the maximum amount of this benefit that can be taken. 

   When the employee reaches the ceiling amount for the year, Drake Accounting discontinues giving this benefit to that employee.

   • State: 
     • For multi-location employees, select the specific state to which this benefit applies.
     • When choosing a specific state, the benefit will only apply to payroll in that state.
     • Select <ALL> to have the benefit apply to payroll in all states.
   • Other Properties
     • Dollars/Cents or Percent must always be selected.
     • When Based on Hours Worked is selected, the benefit is calculated by multiplying the number in the Hours Worked field on the Live Payroll (or ATF Payroll) screen by the Amount.
     • When Based on Hours Worked is NOT selected, the benefit is calculated by multiplying gross pay by the Amount.​
4. Select the Taxing and Income Options that apply:
   • Not Taxed - Not Applied to Gross or Net Pay:
     • The benefit is not taxed and does not transfer to the Journal if the bookkeeping function is used. 
   • Not Taxed - Apply to Net Pay Only:
     • The benefit is not taxed, but the amount is added to Net Pay.
   • Taxed - Apply to Gross and Net Pay:
     • The benefit is taxed based on the checkbox selections (Federal, SS, Medicare, FUTA, State, Local, and SUTA) and the amount is added to Gross and Net Pay.
   • Taxed - Not Applied to Gross or Net Pay:
     • The benefit is taxed but the benefit amount is not added to either the Gross or Net Pay and does not transfer to the Journal if the bookkeeping function is used.
   • Taxed - Apply to Gross Only:
     • The benefit will be taxed based on the selections marked.  By default, all boxes are selected under Benefit Subject To.  Edit as applicable for the benefit.
   • 941 Box 2: 
     • Select this box to include the total paid by the employer for this benefit on Form 941 Box 2.
     • Checked by default, this option is available only if the benefit is not taxed.
   • 940 Box 3:
     • Select this box to include the total paid by the employer for this benefit on Form 940 Box 3 (Total payments to all employees).
     • Checked by default, this option is available only if the benefit is not taxed.
   • W-2 Box 1, 10, 14:
     • Select any that apply.
   • W-2 Box 12: 
     • During W-2 processing, this code indicates which letters to enter for the Box 12 code. ​
5. Select any options applicable in the Benefit Subject To section if the benefit is taxable.
6. Select Save after entering each benefit.
   • Additional options:
     • Reset to reset the benefit back to the original amounts.
     • Choose Save And Apply All to update the benefit globally for all the employees.
       • A message will display asking if you want to update the benefits on all applicable employees on the Benefits tab under Employee Setup.                                                                                                          
       • Click Yes to save or No to exit.
       • Click Exit when finished. 
         

1. Go to Employees > Employee Setup > Benefits tab.
   • The list of benefits set up for the employer display in the left pane.
2. Select the benefit and select the right arrow icon to assign it to the employee.
   • The benefit now displays under the Employee Benefit Name section.
   • Edit the Amount and Ceiling if necessary.
     • Amount
       • Enter the amount of the benefit for this employee.
     • Ceiling
       • Enter the maximum amount of this benefit that can be taken by this employee.
3. Repeat Step 2 for each benefit for the selected employee.
4. Select Save when finished.

To remove a benefit from an employee's list, select the benefit in the right pane and select the left arrow icon to put the benefit back in the left pane.  Select Save when finished.​​