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Last year I had a nightmare when calculating the life insurance over 50k totals at year end. I do one calculation in December. It did not add to the proper boxes on the W-2's. Does anyone have current and correct directions for setting this up? Thank you!
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Should the state wages in box #16 also be increased by that amount?
See KnowledgeBase article 930438.
INTRODUCTION
This article describes one way that you can track group-term life insurance coverage that is more than $50,000 in Microsoft Dynamics SL. You track this coverage for the W-2 form and for tax purposes.
To track group-term life insurance coverage that is more than $50,000, follow these steps:
1. Create a new earnings type. To do this, follow these steps: a. In the Modules list, click Payroll .
b. In the Payroll pane, click Earnings Type under Maintenance .
c. In the Earnings Type ID box, type the earnings type ID that you want to use.
d. In the Earnings Type box, select Regular .
e. Click to clear the Contributes To Net Pay check box.
f. In the Deduction ID box, enter any deductions that you want to apply.
g. Click the W-2 Control Data tab.
h. In the Box Number box, select Box 12 One or more of the lettered amounts .
i. In the Box Letter box, select C Cost grp term life>$50000 .
j. Click Save , and then close the Earnings Type Maintenance (02.270.00) screen.
2. Spread the tax burden throughout the year. To do this, follow one of these steps: • Create timesheets throughout the year by using the earnings type that you created in step 1.
• Create one timesheet that contains the whole amount before the last check of the calendar year.
Note The amount that you enter for this new earnings type appears as earnings in box 1 and in box 12 on the W-2 form.
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So, to summarize, you have an earnings type that doesn't contribute to net pay with the appropriate deductions attached. Enter enough earnings to cover the premiums. Then any taxes that are calculated for this earnings type will be withheld from the other earnings. You must do this by the last check of the year.
Thanks Rick - can you tell me which box #'s on the W-2 form are affected by the excess life insurance? I have received different answers in regards to box 1 and 5.
Diane,
When you set up a payroll deduction under deduction maintenance you have a tab (W2 Control) on that screen where you can indicated what W2 letter and box that deduction should show on the W2. You need to make sure that the excess life insurance deduction has the correct information on that tab. If that is set up correctly then the amount should flow to the W2 just fine. You do have to set this up while payroll is still in the reporting year. If you move into the next reporting year and then set it up on deduction maintenance and try to calculate W2s for the prior year, it will not work because the deduction table has an entry for each calendar year but the screen only edits the current calendar year so your changes do not affect the prior calendar year W2 calculations.
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