Employer burden payroll accruals-Insurance (GL)

angelina21 · ‎July 20, 2022

Hello,

I am trying to automate general liability employer burden costs to calculate each time payroll is posted. Our general liability insurance expenses are based on payroll and should be managed in QB similar to workers compensation insurance. I do not see an option to create a payroll item that divides the gross payroll wages by $1,000 x the rate. The is our employer burden and general liability expense and liability we should owe to the insurance company.

I have done extensive research online, in the community and do not see this as an option. I would prefer not to enter this calculation manually everytime payroll is posted as a journal entry. Has anyone setup insurance accruals to track general liability costs based on payroll?

Thank you,

Angie

ReymondO · ‎July 20, 2022

Thanks for getting back and adding additional details, @angelina21.

For now, the option to create a payroll item that divides the gross payroll wages by $1,000 x the rate is unavailable in QuickBooks Desktop Payroll. We have to calculate the actual amount for general liability insurance manually once payroll is posted as a journal entry.

I can see how this option would lessen your task in QuickBooks so let me take note of this as a suggestion. On the other hand, I suggest sending feedback to our product developers. That way, they can review your request and most likely include it in future updates.

Here's how:

Click the Help menu and select Send Feedback Online.
Choose Product Suggestion, then enter the details of your concern.
Select Send Feedback and click Close Window.

In case you need related resources while working with QuickBooks, please feel free to skim through the topics from our help articles.

I want to be your main point of contact, so please let me know if you have any other payroll concerns or questions. Please know I'm ready to assist further. Have a good one.

View solution in original post

LeizylM · ‎July 20, 2022

I'll help you establish everything, Angie.

QuickBooks is currently following the compliance “when employer-provided group term life insurance (GTLI) exceeds $50,000 for an employee, the value of the excess coverage (as determined by the IRS) must be reported as income, minus any after-tax premiums paid by the employee”.

To learn more about how life insurance is reported on paychecks and calculated, visit this article: Set up and report Group-Term Life Insurance (GTLI).

Drop a comment below if you have additional questions on setting up an item in your account. I'm constantly here to help you. Keep safe always.

angelina21 · ‎July 20, 2022

This is not related to group term life insurance. This is in relation to our company general liability insurance.

It is not taxable, however it is an employer burden calculated by dividing payroll by $1,000 x the rate. I just need a payroll item to take the gross wages divide by $1,000 x rate, increasing the burden costs and liability to the insurance company.

Do you have a solution for that?

Thank you,

Angie

angelina21 · ‎July 20, 2022

If this helps, the logic is the same calculation as workers compensation with class codes and different rates per class code but for general liability insurance and divided by $1,000 x rate where as workers compensation insurance is divided by $100 x rate.

Angie

ReymondO · ‎July 20, 2022

Thanks for getting back and adding additional details, @angelina21.

For now, the option to create a payroll item that divides the gross payroll wages by $1,000 x the rate is unavailable in QuickBooks Desktop Payroll. We have to calculate the actual amount for general liability insurance manually once payroll is posted as a journal entry.

I can see how this option would lessen your task in QuickBooks so let me take note of this as a suggestion. On the other hand, I suggest sending feedback to our product developers. That way, they can review your request and most likely include it in future updates.

Here's how:

Click the Help menu and select Send Feedback Online.
Choose Product Suggestion, then enter the details of your concern.
Select Send Feedback and click Close Window.

In case you need related resources while working with QuickBooks, please feel free to skim through the topics from our help articles.

I want to be your main point of contact, so please let me know if you have any other payroll concerns or questions. Please know I'm ready to assist further. Have a good one.

Janyse · ‎March 06, 2024

Did you ever find a solution for this issue? I am having the same problem. I wonder if we can setup an additional "Work Comp" liability and change the rates to match your GL rates and just rename it so you will know it is for your GL not WC. Have you by chance tried this?

angelina21 · ‎March 06, 2024

Unfortunately no. I have to manually calculate it and enter it in the paycheck employer burden section. Even if another GL account was created, QuickBooks will not calculate general liability insurance rates by class code for every $1,000. I tried to add it to the Workers Compensation table, however the mod rate creates an incorrect calculation.

Janyse · ‎March 06, 2024

How are you manually entering it into the employer burnden section? Do you have it setup to pay it out of your payroll liabilities, or do you have to do a GJE?

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