Tax Report and pre-tax deductions from salary/pay (Larry O'Leary)

[J. Alex Aycinena]

Larry,

Use two Income accounts: one for non-taxed amounts and one for taxed
amounts as follows:

> From: "Larry O'Leary" <larryoleary at gmail.com>
> To: gnucash-user at gnucash.org
> Date: Sat, 27 Mar 2010 23:41:09 -0600
> Subject: Tax Report and pre-tax deductions from salary/pay
> Okay.  I have done some searching and couldn't seem to come up with a
> good explanation or description of how to make this work.
>
> What I have is a pretty straight forward way of tracking pay checks
> from my employer:
>
> Acme                    -- Split Transaction --
>    Fed Tax              Exp:Tax:Fed         475.00
>    Soc Sec Tax          Exp:Tax:Soc Sec     225.00
>    Med Tax              Exp:Tax:Med          75.00
>    State Tax            Exp:Tax:State       100.00
>    125 Flex Spending    Liab:FSA             25.00
>    Checking 1           Asst:Checking 1    1000.00
>    Checking 2           Asst:Checking 2     100.00
>    Savings 1            Asst:Savings 1     1000.00
>    Earnings Statement   Inc:Paychecks:Acme    0.00
>    Salary               Inc.Salary                  3000.00

Change this line to two splits:

Salary               Inc:Salary:un-taxed             25.00
Salary               Inc:Salary:taxed                  2975.00

>
>
> Now, let's say that this is all I have for the entire year.  I am now
> ready to create a tax report or export to TXF.  I can see in the Tax
> Options that I need to assign my W-2 wages to the account Inc:Salary.

instead, assign TXF code to W-2 wages to account Inc:Salary:taxed

> However, my real W-2 doesn't reflect 3000.00 as wages.  Instead, it
> reflects 2975.00.  This is because the Liab:FSA amount of 25.00 was a
> pre-tax deduction.  I need some way of associated this with the W-2's
> wages box.  For example:
>
> W-2 Wages = Inc:Salary - Liab:FSA
>
>
> Now, I am aware that the example doesn't make a whole lot of sense
> seeing that this would seem to imply that I want to subtract the
> Liab:FSA account balance from Inc:Salary.  What I really want to do is
> subtract all the deductions (pre-tax) from W-2 Wages.  Is this
> possible?  Or is this something that we are expected to do manually
> when calculating taxes?
>
> My goal is to get a report from GnuCash that will give me the exact
> figures for all the necessary tax form/worksheet lines/columns.
>
> Thanks in advance!
> Larry
>

Alex