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5.  Set up the deduction in the SJI-System Account-Payroll.
      The negative deduction should be coded to Payroll Expense; the same place their regular pay goes.
      The positive deduction should credit the account that is debited when premiums are paid. 
      SJI > System Accounts > Payroll >
   
PROCESS:
When issuing the check, the wages will increase by the amount of the negative amount deduction.
This will increase the employee's gross salary by the premium amount. The gross salary will have the tax charged on it.  
Note that your Regular Pay on check must absorb the taxes. If not, then the Life Insurance Deduction is calculated incorrectly and reported on W-2 Wrong. Gross check amount must be large enough to cover the taxes taken from the check.
Example:  25,000 Excess Life Insurance produces over $10,000 in taxes.  If there is not 10,000 of regular pay to absorb the taxes, then the deduction is limited.
It will report to the IRS the wrong amount.

Then the deduction will take the money back out of the employee's paycheck, causing the net amount to lower by the deduction amount.

This deduction amount will be reported on the W-2 based upon the W-2 form setup. 

 NOTE:
In the past, we have done this with a single deduction code.  However, UBG Retirement has stated that they will not pay retirement on the added salary of the Life Insurance over $50,000.  In order to report the numbers correctly, we are not using two deduction codes.
If you are not using UBG Retirement, then you can still handle this with a single deduction code.
You just increase the salary using OTHER INCOME field and remove the amount with the deduction code. 

More How-To's:

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