Employee Workforce Grant Reimbursement
- June 11, 2024
- 1 reply
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Hello,
We have received money from the local state for workforce grant. 100% of the money has to be distributed to the eligible employees. It is taxable.
How do I include this distribution on their paycheck without incurring an employer tax liability. Currently if I add a pay type; Workforce Grant and include the monies under that pay item, the employee obviously sees a larger tax withholding; however I also see a significant increase under employer taxes; i.e. social security, medicare, etc. That doesn't seem correct (nor fair) to me as 100% of the grant money is going to the employee.
Is there a way to setup a payroll item that excludes employer taxes OR an item that excludes withholding all together such that the employee can pay their own taxes when they are ready.
If I setup the amount under "reimbursement" item type, I am worried employees will not pay taxes on it as it will not be reported correctly on the W2. Thank you