Setting up a Section 125 Plan Deduction in Payroll CS or Payroll Compliance - CS Professional Suite Accounting Products

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Product support for the Creative Solutions Accounting platform ended on September 30, 2020.

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Resolution

Section 125 Plans are pre-tax deductions that allow employees the opportunity to pay for certain benefits on a pretax basis. Section 125 of the IRS Internal Revenue Code allows for several different alternative plans, three of the most common are Premium Only Plans, Flexible Spending Accounts, and Cafeteria Plans.

We provide a pre-defined pretax deduction within the Payroll CS and Payroll Compliance for these Section 125 Plans. To view this pre-defined deduction go to Setup / System Configuration / Deduction Items within your CS Professional Suite Accounting program. Once this window has opened find the item "Section 125 Plan". This item has been correctly configured to use as a section 125 deduction. If you have the need for multiple Section 125 Plan items use the following instructions:

  1. Go to Setup / System Configuration / Deduction Items and find the "Section 125 Plan" item.
  2. Once the item has been highlighted click the F3 button on your keyboard and click "Copy Pay Item".
  3. After the item has been copied enter your new item Description and Report Description.
  4. Finally, click the Save Button and your item should be properly configured for use.

To view additional information on setting up deductions items in Payroll CS or Payroll Compliance please refer to Case K35318281

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