Pre Tax deductions and Futa

[equinecpa]

I have a client who needs me to prepare W-2s for them as well as their annual 940. I have their figures from Peachtree but the reports Peachtree has created are not correct. I believe I'll need to amend their 941's.

The company has a sec 125 plan and a pre-tax aflac plan.

Am I correct that their Taxable wages should be equal to Gross wages-sec 125 contributions-aflac pre-tax contribution and that Taxable wages on their 941/w2's should =Social Security wages.

On the FUTA -gross would be the entire payroll, exempt would be the 125 and aflac contributions?

[ChEAr$]

I have a client who needs me to prepare W-2s for them as well as their annual 940. I have their figures from Peachtree but the reports Peachtree has created are not correct. I believe I'll need to amend their 941's.

The company has a sec 125 plan and a pre-tax aflac plan.

Am I correct that their Taxable wages should be equal to Gross wages-sec 125 contributions-aflac pre-tax contribution and that Taxable wages on their 941/w2's should =Social Security wages.

On the FUTA -gross would be the entire payroll, exempt would be the 125 and aflac contributions?

Wish I could somehow get AFLAC's new commercial in here somewhere, but can't
figure out just how "What the quack?" would fit.

anyway, AFLAc is headquartered here and the question comes up frequently.
The W2's I'll be preparing tomorrow for a client will figure it just like you described.

Disclaimer: I own the stock. (grin)

[JG EA]

The qualified fringe benefits that are section 125 are excluded from everything. Totally pre-tax. Like Accident and health benefits. See list in Pub 15B page 2, 3. Also the chart in Pub 15 about page 32 (Don't have the right one with me.)
Also the 941 should match the Box 1 W-2 figures.

And you are right on the 940. The instructions tell us to put on line 3 all the wages (and 125 plans) and then take them out.