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Level 1

How do I set up a payroll item that should go in Box 12 with Code C on the W2? It is the taxable income on life insurance in excess of $50,000.00.

o I set up the payroll item for the taxable income to an employee for Life Insurance in excess of $50,000.00 that should go in Box 12 with Code C on the employees W2?

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QuickBooks Team

How do I set up a payroll item that should go in Box 12 with Code C on the W2? It is the taxable income on life insurance in excess of $50,000.00.

Pleased to have you here, @Christy61.

 

I'd be delighted to help walk you through in setting up your Group-Term Life Insurance payroll item.

 

Here's how:

  1. Go to the Employees button.
  2. Choose the name of the specific employee.
  3. Under Pay box, click Edit button.
  4. Click Show all pay types link.
  5. Checked Group-Term Life Insurance.
  6. Enter the amount of the taxable income.
  7. Hit Ok.

That should do it! You may check out the articles below for additional insights:

Feel free to visit the Community page if you have other questions about setting up your payroll items. I'm always here to help. Wishing you continues success.

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Level 1

How do I set up a payroll item that should go in Box 12 with Code C on the W2? It is the taxable income on life insurance in excess of $50,000.00.

Using Quickbooks Enterprise 20.0 with enhanced payroll. Does QB automatically add the amount to box 1, 3 and 5 of the W2 or do you have to override it and add it yourself to each W2? I have already set up the Group Life Over threshold exempt amount for each employee, what I am trying to determine is if box 1, 3, and 5 are correct.

Highlighted
QuickBooks Team

How do I set up a payroll item that should go in Box 12 with Code C on the W2? It is the taxable income on life insurance in excess of $50,000.00.

Hello, @rshivers.

 

Allow me to join the thread and to give you insights about the Group term life insurance in QuickBooks Desktop Payroll. 

 

You don't need to override the line 1, 3, and 5 because QuickBooks automatically populates the amount on those lines. The amount of Group item life insurance will also flow in the box 12 with code C if you've created a separate payroll item in your QuickBooks Account. 

 

However, if you've not created a separate line item, it won't flow the amount to the form. 

 

Let me walk you through the steps on how to verify the Quickbooks total by accessing the Payroll Summary report. 

 

Here's how:

 

  1. Go to the Reports menu, then pick the Payroll Item Listing
  2. Click Customize report located in the upper left corner, then hit Filters
  3. In the columns section, select only Payroll item and Tax tracking Type, then put a check-mark next to any item that has a tax tracking type. 
  4. Hit Print. 

After that, go back to the Reports tab and run the Payroll Summary report. Let me guide you how:

 

  1. In the Payroll Summary page, click the Customize report and tap  Filters. 
  2. Type Payroll Item in the search box under Columns, then put a checkmark.
  3. Hit the Payroll Item drop-down arrow and pick Multiple Payroll Items.
  4. Check off all the payroll items you marked earlier. 

If any of them are incorrect, the tax tracking type needs to be modified so that the boxes of W-2 is also correct. 

 

On the other side, if the information is all correct, let's generate the W-2 forms and compare them. 

 

For additional guidance about the process and the different pay types, please browse this article: W2 form boxes explained.

 

For future reference about the two new codes in the W-3, you make check out this article: About the new W-2 box 12 codes GG & HH.

 

Let me know if you have follow up questions. I'm always here to help. Have a nice day ahead!

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