Why isn't the employee contribution deducted from net pay?

  • Modified on: Tue, 1 Sep, 2026 at 12:46 PM

Wage codes like 500–520 only lower the taxable fringe benefit. They don't take money out of the employee's take-home pay.


If you also want the contribution deducted from net pay, you need to add it separately on a deduction wage code for example, wage code 890 "Deduction own contribution company car."

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