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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / GP 2010 Deductions
Microsoft Dynamics GP (Archived)

GP 2010 Deductions

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Posted on by Community Member Microsoft Employee

How do you set a monthly premium but have the benefit deduction come out bi-weekly?  For example, Life insurance is $0.15 per $1,000 for ages 45 - 49, but the bi-weekly deduction should be ($0.15*12)/26 per $1,000.

Any ideas on how to do this in GP 2010?  We could hard code the deduction for each employee but want the system to automatically adjust the deduction as the employee's age changes.  We also thought about setting the premium for bi-weekly, but the IRS does not allow this.

Thanks in advance for your help.

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  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: GP 2010 Deductions

    Hi John,

    Thank you again for the feedback.  You provided us with some good options to consider.  We have discussed this more internally and are considering making the taxable benefit to be monthly since it is not a significant deduction.  That way, the 27th payment also does not have an impact.

    Terry

  • Suggested answer
    John Lowther Profile Picture
    John Lowther 5,122 on at
    Re: GP 2010 Deductions

    As far as I know the IRS does not actually care about your Life Insurance plan. They just want your taxes and that is a totally different subject, if I understand your situation correctly. Which I could be totally misunderstanding, and if so then please correct me.

    As to how to handle this please check out the blog post located here.

    Let me know how it goes,

     

     

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: GP 2010 Deductions

    Hi John,

    Thanks for your response. I appreciate your review.  Also thanks for the link to "27th pay".

    The way it was described to me was that the IRS sets the benefit based on a monthly cost.  For example, the monthly cost is $0.15 per thousand (over $50K) for ages 45 - 49.  But since we want to tax the benefit bi-weekly, the cost would be (0.15 * 12 / 26) or 0.069231.  It is our understanding that we must set the cost per month.  We are considering changing our benefit tax to only be monthly to accommodate this within GP.  Our preference is to set the cost to be monthly, but tax the benefit bi-weekly.  We cannot figure out a way to do this though.

    Terry

  • John Lowther Profile Picture
    John Lowther 5,122 on at
    Re: GP 2010 Deductions

    Hey Terry,

    What IRS ruling (law) are you refering to that does not allow you do deduct bi-weekly? Has the IRS changed something?

    The last time I checked (quite a while back) the only problem with bi-weekly deductions for monthly premiums was on those years that employees received 27 checks due to the actual dates that the checks fell on, you had to make sure that the last check did not deduct those monthly deductions. See the bottom part of this post for more details.

     

     

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