Sources of Nontaxable Categories in the WKR Report
Some allowances or in-kind provisions for employees are exempted from tax. In the Work-Related Costs (WKR) report, such benefits are listed under Nontaxable Categories.
The transactions that are included under the Nontaxable Categories header of the WKR report are based on the WKR categories you set on transaction records as well as in accounts, expense categories, and items.
The WKR category in a transaction line takes precedence over the categories assigned to an account, item, or expense category where this transaction line belongs.
For example, a bill has an item that is assigned under a targeted exemption category, and posts to an account that had been assigned under an intermediary costs category. This transaction line will be included in the WKR report under Targeted Exemption.
The following diagram shows examples when a transaction is included and under which nontaxable category in the report: