Field Description - Fringe Calculation Code
The Fringe Calculation Code (also referred to as Type) determines how fringe benefit amounts are calculated by the Payroll Post program.
Tips:
Enter the standard Fringe Calculation Code during Fringe Master Maintenance. You can override the standard code when you assign a fringe benefit to an employee during Employee Fringe Maintenance.
For more information, refer to Understanding Fringe Benefits.
The following codes are available:
0 - Enter an amount: The Payroll Post program calculates the Fringe Distribution Amount and automatically enters it into the Employee Fringe file. The Fringe Distribution Amount matches the calculated amount for the associated deduction. The Fringe Distribution Amount can vary among pay periods according to the calculation. For more information refer to the topic, Fringe Example - Regular FICA Setup.
1 - Flat amount: The
Payroll Post program calculates the Fringe Distribution Amount, and automatically
enters it into the Employee Fringe file. The
Fringe Distribution Amount matches the calculated amount for the associated
deduction. The
Fringe Distribution Amount is usually the same every pay period. For
more information refer to the topic, Fringe
Example - Flat Amount for Health Club.
Note: There
is no distinction in the programs between codes 0 and 1. The
difference is for your clarification only.
2 - Percent of Gross: The
Payroll Post program uses the Fringe Amount as a factor to calculate a
percent of the gross pay. The
Payroll Post automatically enters the calculated Fringe Distribution Amount
into the Employee Fringe file. The
Fringe Distribution Amount does not necessarily match the calculated amount
for the associated deduction. For
more information refer to the topic, Fringe
Example - Percent of Gross Calculation for 401K.
Note: For
this option, enter the Fringe Amount
as a percentage.
3 - Use Fringe Amnt: The Payroll Post program uses the Fringe Amount as the Fringe Distribution Amount in the Employee Fringe file. The Fringe Distribution Amount does not necessarily match the calculated amount for the associated deduction. For more information refer to the topic, Fringe Example - Birthday Club Using Fringe Amount.
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