How to process payroll check with earnings not contributing to net pay but needs to be taxed

Issue 

An employer may need to record earnings that do not contribute to net pay (meaning, no money is given to the employee) but the employer side taxes must be calculated and recorded and paid. 


Resolution 
 

1. Perform the following steps: 
2. Setup a new Earnings Type for the earnings the taxes will be calculated against. 
3. Type – Regular 
4. Deductions – add all applicable taxes  

5. Enter a batch for the employee using the new code.  

6. Enter additional time worked by the employee 
7. Run the Calculation process 
8. Print the Check Preview report and check that taxes were calculated correctly for all wages paid and that the new earnings type is not part of net pay 

If Check Preview is accurate, continue steps to pay the employee 
 

1. If the employee does not have other wages, ensure the following is true: 
2. The Check Preview should show a zero check.   
3. The earnings should be marked with an asterisks indicating it will not contribute to net pay.   

4. The employer taxes attached to the earnings type calculated correctly. 
5. The check, when printed, will show as VOID. 

6. The "wages" should not affect any GL accounts since no wage were actually paid.