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February 21, 2024
Question

How do I set up SF commuter benefits? It's a $300 pretax deduction. Employees basically do not pay tax on $300 in wages, per month, so $138.46 per check (bi-weekly)

  • February 21, 2024
  • 1 reply
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1 reply

February 21, 2024

Welcome to the Community space, Michael. I'm here to help you set up SF Commuter Benefits for your employees. You'll need to choose Health Insurance type to achieve this.

 

Here's how:

 

  1. On the left menu, go to Payroll and select Employees.
  2. Click the Edit payroll items and select New payroll item.
  3. Select Deductions/contributions.
  4. Choose the Health insurance type and Vision Insurance subtype.
  5. Add a Description. This is the deduction name that appears on their paycheck.
  6. Select Pretax as the tax option and hit Create.
  7. Click Assign Employee, select all employees who are eligible for deduction, and click Next.
  8. Enter the deduction on the Amount per paycheck, which is $138.46. 
  9. Complete any necessary information and click Save.

 

You'll need to ensure that your employees' pay schedule is set up for Every other week or bi-weekly.

 

Additionally, here are some articles that can help you set more deductions from your employees:

 

 

Feel free to let me know if there's anything else I can help you with besides setting up commuter benefits for your employees. I'm always available to assist you.

February 21, 2024

Thank you for this, but I am confused about something. This looks like it deducts the $138.46 as a pretax deduction, then the rest of the wages on the paycheck would be taxed, but then the $138.46 is not getting added back to the check. This is a "pretax deduction," so they aren't taxed on this amount, but they're supposed to still collect the untaxed wages. How does this get added back?

February 21, 2024

I appreciate your quick response, Michael. I'm here to guide you to get the best help available in handling your employee's tax deductions.

 

When you run payroll, the $138.46 will be deducted from the employee's gross pay before taxes are calculated. This means that the employee will not be taxed on this amount. The remaining wages on the paycheck will be taxed as usual. Since the pre-tax deduction has already been removed from the employee's paycheck, it is not added back later during the calculation of the net pay.

 

If you want to ensure that the employee receives the full amount of their untaxed wages, it is recommended to seek assistance from a Tax Advisor or your accountant who can help manage the commuter benefits and ensure proper management.

 

Moreover, here are some articles that can help you set other deductions from your employees:

 

 

Please don't hesitate to reach out if you need help with anything other than setting up commuter benefits. I'm always available to assist you.