Setting Up Tax-Deferred Compensation Deductions for the U.S.

Access the U.S. Legislative/Regulatory form.

Select Pre-Tax Deduction type or Fringe Taxable Benefit type

Select an option that allows Vertex to use current tax laws in various jurisdictions to determine whether a DBA is pretax for a specified tax area.

The 401k option specifies all deferred compensation plans (401k, 403b, 408k, 457, and 501c). The 125 option specifies Section 125 plans. Specifying either of these options eliminates the need to set up tax-exempt status in the system or to create multiple deductions to accommodate pre-tax status in certain states.

For the U.S. and Canada, the GTL (Group Term Life) option specifies the Fringe Benefit for Group Term Life.