For example, a payroll item for dependent care should not be subject to
federal or state taxes, and consequently, should not affect the wage base.
To see if a payroll item is affecting the wage base, generate a
payroll item detail report. The
amounts in the Wage Base column for pre-tax and exempt payroll items should be
zero. If you need to correct the setup,
edit the payroll item. In the Payroll
Item wizard, click the Default button to see the suggested tax setup for the