Article ID: 865667 - View products that this article applies to.
This article describes how to set up the group-term life insurance portion of an employee paycheck in Microsoft Dynamics GP. This article also explains that any policy amount of more than $50,000 must be reported on the W-2 federal income tax form for the employee.
Use the appropriate method to set up the group-term life insurance benefit.
If the employee is paying federal income tax on a life insurance policy through payroll deductions, you must set up the benefit by following these steps:
http://www.irs.ustreas.gov/Because the benefit is subject to federal income tax, the amount will automatically be added on the W-2 form to the amount in box 1, "Wages, Tips, and other Compensation."
If the Employee is not paying the federal income tax on the life insurance policy, follow these steps: