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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:
In the Benefit Setup window, create a benefit code. Make the code subject to the necessary taxes. This includes federal income tax.
In the lower-right corner of the Benefit Setup window, type 12 in the W-2 box.
Search the IRS Web site for the correct W-2 type. Click the following link to visit the IRS Web site: