Select if this deduction is part of a cafeteria or flexible benefits plan that shelters benefits or deductions from taxes. When these transmittals are processed through the supplemental payroll:

If the deduction transmittal has the cafeteria check box selected and the user chooses to use the regular or flat withholding tax supplemental option, the transmittal amount is included in the withholding gross, any associated withholding tax is calculated, and the tax reduces the net amount of the check.

If the deduction transmittal has the cafeteria check box selected and the user chooses to use the FICA supplemental option, the transmittal amount is included in the FICA gross and/or medicare gross, any associated taxes are calculated, and the taxes reduce the net amount of the check.

If the employee only has the deduction refund transmittal and the FICA supplemental option is chosen, the employee’s master distribution (account type G only) is used to determine the account distribution for the FICA and/or medicare taxes. If the employee has multiple jobs, all jobs that include an account type G are used in determining the account distribution. The percentage of tax to be applied to each account is determined by the current job percent assigned divided by the total percent assigned of jobs that have G account types multiplied by the current account percent.

If the employee has extra duty transmittals as well as a deduction refund that affect FICA and/or medicare calculations (Cafe 125 selected on the transmittal), the extra duty transmittals are the only accounts used for the FICA tax distribution.

If the employee has no master distribution and no extra duty transmittals and has a deduction refund transmittal, a failure message is issued for the FICA taxes calculated.