Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Topics

Record the Group Term Life in excess of $50,000 on the same check

You can record the Group Term Life (GTL) in excess of $50,000 on the same check as regular wages for a scheduled pay date.
Since you enter GTL for reporting and tax calculation purposes, but exclude from the net pay or subtract during the calculation of the net pay, the Social Security, Medicare, federal, state, and local taxes that calculate on the GTL will deduct from the employee’s regular wages for the period and will reduce their standard net pay.
Social Security, Medicare, the employee portion of state unemployment tax and local tax withholding are required, but employees usually don’t want the additional federal and state income tax withheld.
In this case, you'll need to make note of the federal and state tax amounts that calculate before entering the GTL. After you've entered the GTL, you’ll need to override the calculated tax amounts and adjust the totals back to the amounts you noted before entering the GTL.
note
GTL in excess of $50,000 is exempt from PA state and PA local tax withholding.
  1. Select
    Actions
    , then
    Enter Time
    .
  2. Select the proper payroll schedule in the Payroll schedule field.
  3. Enter the standard hours and payroll figures as you normally do each pay period.
  4. Take note of the net pay, federal, and state tax amounts that calculate on the regular wages.
    note
    If additional payroll items that calculate as a percentage of wages apply, these items should calculate exclusively on the regular wages and not on the GTL amounts.
    If those amounts increase after you entered the GTL, you'll need to reset the amounts to the original totals.
  5. Enter the GTL amounts.
    This will cause increases to the Social Security, Medicare, federal, state and local tax amounts, and any items that calculate as a percentage of wages (that is, 401k). The net pay will decrease accordingly.
  6. If the employee wants the additional tax amounts withheld on the check, skip to step 8 to preview the payroll.
  7. If the employee doesn't want the additional amounts withheld from their check, you'll need to manually override the proper tax, and deduction fields and reset the amounts to the totals you noted before entering the GTL (step 4). Once you've adjusted the amounts, the GTL will only reduce the net pay by the additional required taxes.
  8. Select
    Preview Payroll
     to review payroll checks before submitting them to the application for processing.
  9. Select
    Submit Batch
     once you're ready to submit the figures for processing.
    note
    • Watch out for additional payroll items that calculate as a percentage of wages such as retirement deductions and employer match amounts. If those items should calculate exclusively on the regular wages (not on the GTL amounts), you may need to adjust the calculated amounts. When you override calculated amounts, be careful of the yearly limits and ensure your changes won’t take employees over the set limits for the year.
    • The taxes will calculate based on the total gross taxable wages (regular wages + taxable GTL), your standard payroll period, and the employee’s filing status/allowances. Be sure to adjust the taxes if the employees don’t want additional income tax amounts withheld for the Personal Use of Company Car. For employees with fixed amounts or fixed percentages set up for income tax withholding, the fixed rates will be applied.