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The goal is to increase the paycheck by the amount of the "group term life insurance over $50,000", so tax is charged on it, but to NOT increase the net amount of the paycheck or retirement amounts.
To do this we will setup 2-deduction codes.
1. Deduction code to add to check (negative amount) +LIFE50 (TAX GROUP LIFE > 50k)
2. Deduction code to remove from check (positive amount) LIFE50 (GROUP LIFE > 50k)
Step-by-step guide:
- Set up a deduction code for this life insurance premium to add to the check. +LIFE50
PAY > Setup Information > Deduction Code
Deduct Before Fica? = Yes
FIT/FUTA Exempt? = B-exempt from Both
W-2 Code = blank
Calc Order = 1 (you may need to re-order your other deductions to make this happen)
2. Setup a deduction that will remove the life insurance premium and report to the IRS. LIFE50
PAY > Setup Information > Deduction Code
Deduct Before Fica? = No
FIT/FUTA Exempt? = N-Not Exempt
W-2 Code = C
Calc Order = whatever is available
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