Fringe Benefit Deductions (i.e. Civil Union and Commuter)

Fringe Benefit deductions are used to tax the value of a benefit that is given to a employee.

Here are a few examples of Fringe setup in the system:

Imputed Income -

This deduction is linked to the contributory insurance deduction in the pension group.  The IRS requires that an employee pays tax on the value of Group Term life insurance over 50,000.

See separate page that discusses Inputed Income in depth.

Civil Union Benefits - 

The employee is charged the tax for the value of the partner's benefits.  First, create a deduction for the Fringe Benefit - as per the sample below.  In this example, the employee is taxed on Federal and FICA/Medicare.  Note - even though you are checking off the "Exempt from" checkboxes, what this is doing in this case is increasing the gross by the amount of the fringe for these items (per the tool tip shown in purple).

After you assign the deduction to the employee, enter the per pay amount in the Amount field of the Fringe deduction.  The district must know this amount/value of the benefit.  The system cannot figure it out.

The system will calculate the value of the taxes for each deduction.  Here is an example of the before and after the fringe deduction was added and the calculations:

Commuter Benefit

Employees that receive a payment to offset the cost of commuting are subject to tax on the benefit in excess of a specific limit.

For more information please see https://www.state.nj.us/treasury/taxation/pdf/pubs/tb/tb-24R.pdf    
These limits are set annually and can be seen at http://www.state.nj.us/treasury/taxation/cmntr.shtml  

The employee's total reimbursement is calculated for the full year and then the limit is subtracted giving the amount subject to taxes.  Payroll will calculate the per-pay amount and enter in the deduction, in the amount per pay field.

Example Superintendent receives 400.00 per month from the board  (400.00 X 12 = 4800.00 per year - 3120.00 (2018 max) = 1680.00 / 24 pays = 70.00 per pay

         Example of deduction set-up and usage