Wages excluded from SS & Medicare Tax

[kellyannmiles]

Can anyone tell me how to set up a wage type that is excluded from taxable wages for SS and medicare? The wages are taxable for Federal and state income tax, but not SS & medicare.

I am running Peachtree Premium Accounting for Construction 2009.

[rick Prindivill]

Open Peachtree and your Company. Click on Maintain, Default Information - Employee - Employee Fields. Click on each of the Tax lines and the ADJUST button on the right side of the line. Here you can check or uncheck each of the sources of Income subject or exempt from this Tax calculations. Be sure to review the similar Employer or Company Tab and each of its Tax listings.

Note that the first line reads GROSS which is a sum of the Wages / Salaries listed on the Pay Level Tab. You may need to add an additional line under the Employee Fields for this special wage Income and then add the money to be paid under this new heading versus the Pay Level section.