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How wage basis rulesexpected to be work in below scenarios ?

in Payroll and Global Payroll Interface (GPI) 1 comment

Summary:

The question is specific to Pretax deduction elements and we have 3 sets of elements mentioned below.

1) Element configured with " Pretax deduction" primary and there is no secondary classification --It is not reducing the wages from taxable wages

2) Element configured with "Pretax deduction" and "Deferred compensation 401K" as Secondary classification and can see this in wage basis rules table with check box enabled ----It is not reducing the wages from taxable wages

3) what should be the pretax deduction balance adjustments impact on taxes? does really tax adjustment happen automatically when we do pretax-related balance adjustments?

4) what should the actual behavior of an element which is not used in wage basis rules? Is there any scenario where it is used in the wage basis rule and will not be a taxable wage in the payroll process?

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