This tutorial shows how to set up a Dependent Care Flexible Spending Arrangement Deduction inside Payroll Mate® software.
A Dependent Care Flexible Spending Arrangement (DCFSA) is a pre-tax benefit account used to pay for eligible dependent care services.
https://www.irs.gov/pub/irs-pdf/i2441.pdf
Summary of Steps
This is just a summary; please click “Download Tutorial” for detailed instructions with screenshots.
- Click → Company from shortcuts
- Click → Deduction Categories
- Click → Add
- Enter Title, Abbreviation, Select Calculation (Fixed is the general method) and Paid by
- Enter Default amount (can modify at employee level) and Cutoff as applicable (Note: There is generally a yearly maximum allowed for this type of deduction)
- Checkmark the W2 Options as applicable
- Click Exemptions and checkmark Federal Income Tax, Social Security (employer/employee), Medicare (employer/employee) and Federal Unemployment (Note: This tutorial assumes that the Dependent Care FSA deduction payroll item is exempt from federal tax withholding.)
- Click → OK
You will apply the Dependent Care FSA deduction to each employee as needed
- Click → Employees from shortcuts
- Select the employee to edit
- Click → Edit
- The Modify Employee Wizard will open, Click → Next until you reach the Deductions page
- Checkmark to select Dependent Care FSA and enter deduction amount
- Click → Next until you reach the end of the wizard
- Click → Finish
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