Overview

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

Unlimited benefits can be set up for the employer. To do so, follow these steps:

1. From the side menu, select Employees > Deductions & Benefits.

2. Select the Benefits tab towards the upper left of the window.

   

3. Select the New button at the top left. A blank row is added to the Benefits grid, and the Other Properties section is activated.

4. Complete the following benefit information, as necessary:

   • Benefit Name: Enter the name of the benefit (not the name of an employee). This appears as the name of the benefit on the pay stub.

   • Account: (if using the bookkeeping function) Click the drop list to access the postable Chart of Accounts list.

     Amount: Enter the benefit amount.

     • Format the number as dollars and cents, if needed.

     • If the benefit is based on a percentage, enter the amount as a decimal value less than 1 with unlimited decimal places (such as .05 for 5%).

   • Ceiling:​ Enter the maximum yearly benefit.

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

   • State:

     • For multi-location employees, select the specific state to which this benefit applies.

     • When choosing a specific state, the benefit will apply to payroll in that state only.

     • Select <ALL> to have the benefit apply to payroll in all states.

5. Complete the following information for Other Properties, as necessary:

   • Based On - Select Dollars/Cents or Percent, as applicable.

     • If Based on Hours Worked is selected, the benefit is calculated by multiplying the Hours Worked (located at Employees > Payroll > Live or ATF) by the benefit Amount.

     • If Based on Hours Worked is not selected, the benefit is calculated by multiplying the total Gross Pay (located at Employees > Payroll > Live or ATF) by the benefit Amount.

   • Taxing and Income Options - Select the option that describes how the benefit is taxed and applied to pay:

     • Not Taxed - Not Applied to Gross or Net Pay - The benefit is not taxed and does not affect gross or net pay. The amount 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 Benefit Subject To selections and the amount is added to gross and net pay.

     • Taxed - Not Applied to Gross or Net Pay - The benefit is taxed but the amount is not added to gross or net pay. The amount does not transfer to the Journal if the bookkeeping function is used.

     • Taxed - Apply to Gross Only - The benefit is taxed based on the Benefit Subject To selections and is added to gross pay only.

     • (Starting with DAS26) Include Tips - Includes tips (direct and indirect tips) into the calculation of the Benefit

       • The option is disabled when Dollar/Cents is selected in the Based On drop down. It is also disabled when Based on Hours Worked is checked.

     Note  If Benefit Subject To or Apply To check boxes are grayed out, the selected Taxing and Income Option controls which fields are available. Select the taxing option first, then complete Benefit Subject To and Apply To.

   • Benefit Subject To - Select the applicable boxes if the benefit is taxable (Federal, Social Security, Medicare, State, Local, FUTA, SUTA).

   • Apply To - Select the applicable boxes to include the benefit on federal or state forms and on the employee's Form W-2:

     • 941 Box 2 - Available when the benefit is not taxed. Checked by default.

     • 940 Box 3 - Available when the benefit is not taxed. Checked by default.

     • W-2 Box 1, W-2 Box 10, W-2 Box 14 - Select any that apply.

   • W-2 Box 12 - Indicate the code to be used on box 12 of the employee's Form W-2 during W-2 processing.

   • Benefit Code - Select the applicable benefit code, if needed.

6. Click Save after entering each benefit. Choose Reset to revert all information for the current benefit to its previously saved state.

   Note  Clicking Save And Apply All updates the amount and/or ceiling setting for each employee who has the corresponding benefit assigned to them. Mark the Amount and/or Ceiling check boxes when applying a benefit. Update employees to control which fields are pushed to employees.

7. Add additional benefits as necessary, clicking Exit when finished.

Employee Setup

1. Go to Employees > Employee Setup.

2. Select the employee for whom to apply benefits, then select the Benefits tab.

3. Select the applicable Available Benefit Name and click the right arrow to assign the benefit to the employee. The benefit is displayed as Employee Benefit Name.

4. Double-click the Amount or Ceiling to make edits, if necessary.

5. Once you add all desired benefits, click Save.

At the bottom-right are check boxes for Amount and Ceiling. If marked, pressing F3 reverts the benefit amount and/or ceiling to the default figure established at Employees > Deductions & Benefits > Benefits tab.

Editing Benefits

To edit a benefit that has already been setup:

1. Go to Employees > Deductions & Benefits.

2. Select the Benefits tab followed by the appropriate benefit to be edited.

3. Make necessary changes. It is possible to edit multiple benefits before saving.

4. Click Save to return to the Client Selector.

To update the benefits assigned to the employee(s):

1. Go to Employees > Employee Setup.

2. Select the employee that is to be updated.

3. Select the Benefit tab followed by the appropriate benefit.

4. With the benefit selected, you can:

   • Press F3 to update to default amounts that were set.

   • Manually enter the new amount for the employee.

5. Click Save to return to the employee list.

   • Return to Step 1 if additional employees require updates

Related Links

• Drake Accounting - Entering Payroll Deductions

• Drake Accounting - Match Benefit and Deduction

• Drake Accounting - Withholding Code Setup

• Drake Accounting - Deductions and Benefits Overview