Some companies choose to show the company-paid benefits on the employee check stub. To be able to show this information to the employee, multiple offsetting voluntary deduction lines are used. Therefore, the company-paid deductions are displayed but offset by another voluntary deduction line. They are not actually deducted from the employee’s check. The offsetting line is entered as a negative deduction so that the company-paid deductions and this offsetting line net to a zero-dollar amount.
To set up these deductions, go to Accounting / Setup / Preferences / Payroll tab. A deduction line should be added for each company-paid benefit. In this example, the 401(k) Co. Match and the Life Insurance are company-paid benefits. In addition to the actual benefit lines, another line should be added as the offsetting line and can be called something similar to ‘Company Paid Benefits.’ The same G/L account should be added for the deductions so the amount will be offset by the positive and negative amounts.
When processing payroll, amounts are calculated and entered into the company-paid benefit deductions and then an offsetting entry (using a negative dollar amount) is entered on the Co. Paid Benefits line.
All deductions will appear on the employee paycheck including the offsetting (negative) deduction.
