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Payroll Changes Memo - Misc. Pretax Deduction code disabled effective 01/01/09

Netsuite Payroll previously allowed you to use a deduction type called 'Misc. Pretax Deduction'. This code reduces taxable wages for federal, state, and local income taxes. However, this code doesn’t have a specific law associated with it, and so it is error-prone, resulting in incorrect tax returns and employee Forms W-2.

Effective January 1, 2009, the Misc. Pretax Deduction code was disabled from the system.  You are therefore required to set up a valid code that applies to your deduction such as one of the cafeteria 125 codes available.  Otherwise, if you try to process a payroll using misc. pretax deduction code, the system will show an error and will not be able to continue with the process.

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