Article ID: 865667 - View products that this article applies to.
This article has been archived. It is offered "as is" and will no longer be updated.
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:
Article ID: 865667 - Last Review: December 29, 2014 - Revision: 5.0