Sage 100 Payroll Instructions for Fringe Benefits

Set up a fringe benefit earnings code:

  1. Open Payroll / Setup / Earnings Code Maintenance.
  2. Create an earnings code and select “Fringe” from the ‘Type of Earnings’ drop-down box.
  3. Enter information in all necessary fields, and click the ‘Accept’ button.

Process fringe benefits:

  1. Open Payroll / Main / Payroll Data Entry.
  2. Enter Payroll Cycle information.
  3. Select the employee from the ‘Employee No.’ lookup.
  4. Click the ‘Lines’ tab.
  5. Enter the fringe benefits earnings.
    Note: An offsetting line with deduction code “FB” is created automatically.
  6. Enter remaining earnings and deductions as applicable.
  7. Click the ‘Accept’ button and continue with payroll processing.


  • The “FB” deduction code deducts the Fringe Earning line amount from the net check amount, while taxes are deducted automatically and the net pay amount is adjusted.
  • Fringe benefit earnings should be processed with regular pay in order to properly deduct taxes.
  • Fringe benefit earnings are added to the gross wages, included in the gross amount, and printed in the box labels benefits included in Box 1 on the W-2 forms.
  • The ‘Fringe Benefit’ field in the federal tax summary window of Employee Maintenance is used to display year-to-date fringe benefit amounts (all earnings entered with the fringe type) received by the current employee and reported as taxable income.  This field can is view-only and cannot be edited.

Need Help? 

If you need additional assistance, please call our Technical Support Department at (502) 429-6902 ext. 227 or email and list YEAR END ASSISTANCE in the subject line.


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