Frequently Asked Questions - LexisNexis

General Ledger Accounts
Debit Enter the G/L account to debit with the company contribution. This is typically an expense account.
Credit Enter the G/L account to credit with both the employee deduction and the company contribution. This is
typically a withholding (liability) account.
For the cash method of accounting: If you do not want to account for the withholding until it is actually
remitted, use the same expense account in both the Debit and Credit boxes. When the remittance is paid, allocate
the check to the expense account. After the remittance is paid, the net balance in this account is the expense
portion contributed by the company. (Use a payroll history report for the period in question to determine the
amount to remit.)
Plan Type
The plan type determines whether taxes will be charged on the contributions.
401(K) Plan
Social Security, Medicare, Federal and State Unemployment, State Disability and Workers Compensation
calculations are based on the Gross Wages.
Federal, State and Local Income Tax calculations are based on the Gross Wages minus the Employee Contribution.
Cafeteria Plan
All tax calculations are based on the Gross Wages minus the Employee Contribution.
User Defined Plan
In Company - Deductions (Pretax), define on which amounts the tax calculations should be based. Use the
Taxes for User Defined button.