Starting this month my company has added group term life, Long Term Disability, and Short Term Disability Insurance as a benefit for employees and the company is covering the cost. In the Payroll Item list, I have set up the group term life insurance using EZ set up walk through for group term insurance. For STD and LTD, I set them up in EZ set up using the "Other Insurance" walk through. Our group term life has tax tracking type as "Taxable Grp Trm Life" while STD and LTD have a tax tracking type as "none". Is this correct? If not, what should they be?
Pleased to have you here in the Community, @learnasigo.
Whether you need to track expenses, run payroll, or pay and file your taxes, you can count on QuickBooks to make all of these tasks easier. Allow me to share some information on how Group term life insurance payroll item is set up in the system.
Group-term life insurance that employers provide to employees and their dependents is a special type of benefit subject to taxation and reporting requirements. After you set up tables and enroll employees in the plans, the system automatically calculates employees’ imputed income and associated taxes.
For you to be properly guided in assigning the tax tracking type of your payroll items, I’d highly suggest consulting with your accountant. You can also visit our AnswerXchange Community Team for further assistance on tax-related questions.
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