Example: Create an Offset Deduction for Noncash Gross Ups

Administrator Guide

This example illustrates how to create a deduction to offset a noncash gross-up earning.

You want to give employees gift cards, which are noncash taxable income. You've created a gross-up earning to calculate the taxes on the gift card. You also need to create a post-tax deduction to exclude the value of the gift card from the gross pay.

Add the Post Tax Deductions pay component group on the run category.

Security: Set Up: Payroll (Calculations - Payroll Specific)
domain in the Core Payroll functional area.

Access the

Create Deduction

task.

Enter these values:

Option	Description
Name	Noncash Award (Offset)
Code	NONCASHOFF
Country	Select the country for which you’re creating the pay component.

Enter these values in the

Effective Dated

tab:

Option	Description
Effective Date	The effective date of the deduction.
Calculation	Payroll Input
Input Amount Allowed	Unchecked

From the

Groups

prompt on the

Non-Effective Dated

tab, select Post Tax Deductions
.

Click