PDA

View Full Version : Taxable non-compete payments to employees



NancySlover
08-14-2014, 07:34 PM
My employer would like to add a $25 payment to salaried employees as consideration for a non-compete agreement. He would like for this payment to show separately from their salary. I thought I could do this much the same as your example with the auto expense reimbursement, but it doesn't look like the program is withholding FICA, Med and FIT on these payments. How do I show them as taxable? Is there another way I should do this?
Thank you,
Nancy Slover

Paul Mayer
08-14-2014, 07:56 PM
No the auto reimbursement example is non-taxable.

The only option you would have is to enter it as a bonus to display as a separate item After entering it, you would need to then click the Pay button to calculate the taxes.

NancySlover
08-14-2014, 08:12 PM
That is the only solution I could find too. We give commission bonuses as well so I will have to combine the two. I'll just have to flag it in Trams. Anyway, thank you very much!

Paul Mayer
08-14-2014, 09:48 PM
Sorry there only so many pay types available and you DO NOT want to use Tips as that goes in a special category on the W2's and such.