Payroll Version 5.0 patch 35

Yahoo Archive
1
If I understand you correctly this is what is called imputed income. We set
up a pay type called "imputed" and a deduction called "imputed income".
Then we add the $$ amount to their check and take the deduction for the same
amount. Example: Their pay is $100 + $10 for imputed income. The taxes
are $11 and there is a deduction for $10. So they are left with a net of
$89. This shows up as a separate pay type on the check with a deduction to
match. Set up the paytype as subject to Federal & State Tax but not FUTA,
SUTA, or Social Security. We use this to tax premiums for life insurance in
excess of $50,000.

Sandy Morse
BVR Aero Precision Corporation
2
Our company is looking to tax employees through payroll for employer
paid long term disability premiums. By taxing the employee on the
premium paid by the company for long term disability benefits, the
employee would received untaxed benefit payments in the event of a
disability claim. The theory is that the tax on the premium is
minimal compared to the taxes that would be paid in the event you
actually had an event in which you were dependent on disability
payments.

Has anyone using Vantage payroll taxed employees for benefits not
actually paid to the employee on a check? And if so, how are you
processing that through the payroll? Are you taxing the benefit each
payroll check or on some other basis (quarterly, monthly, etc)

Thank you.

Cheryl Mertz
Milford Enterprises, Inc.
cmertz@...
3
Interesting concept.............glad we let the person who is receiving the
benefit deal with their own taxes instead of taxing all those who don't
............percentages are much better that way. Don't want to have to pay
taxes that DON'T REALLY have to be paid. Editorializing aside.........

Just some questions to help think through the solution....

We have fringe benefits that we deal with this way-annually. But I am
wondering what the IRS viewpoint on insurance premiums are and if they want
the "income" reported at some specified time frame.....like monthly since
premiums are paid monthly?

So are you considering the premiums to be income to the employee in order to
be taxing them on it? and withholding FICA and Fed W/H? How are you
planning on reporting the income? If you don't, won't your 941 be out of
balance?

Had not seen any other responses yet from anyone who is actually doing
this.......seems to me someone had raised this question before...perhaps you
got an off list answer. But any suggestions I could make would need to be
based on answers to the above questions.

Deb Wilmoth
Controller
Reeder & Kline Machine Company, Inc.
Vantage 5.0


-----Original Message-----
From: cmertzus [mailto:cmertz@...]
Sent: Wednesday, November 27, 2002 8:37 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Payroll Version 5.0 patch 35


Our company is looking to tax employees through payroll for employer
paid long term disability premiums. By taxing the employee on the
premium paid by the company for long term disability benefits, the
employee would received untaxed benefit payments in the event of a
disability claim. The theory is that the tax on the premium is
minimal compared to the taxes that would be paid in the event you
actually had an event in which you were dependent on disability
payments.

Has anyone using Vantage payroll taxed employees for benefits not
actually paid to the employee on a check? And if so, how are you
processing that through the payroll? Are you taxing the benefit each
payroll check or on some other basis (quarterly, monthly, etc)

Thank you.

Cheryl Mertz
Milford Enterprises, Inc.
cmertz@...



Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/



[Non-text portions of this message have been removed]
4
We are not doing this here but I have taxed employees on these types of
benefits in the past. You will need to set up a payroll type and a deduction
for Disability Premiums using the same General Ledger account number to
clear the transaction. I believe you can tax them monthly or annually,
whichever you prefer. You might want to do it monthly if the annual amount
will create a large tax liability. Simply report the amount of the premium
in the payroll type and deduct the same amount using the deduction. The
result is that the employee will be taxed on the premium amount and the
deduction will wash the "wage" back out of your GL.

Karen Brodniak
Accounting Manager
Phone: 425-742-7011 x44
Fax: 425-353-8945
karen.brodniak@...

-----Original Message-----
From: Wilmoth, Deb [mailto:Deb@...]
Sent: Wednesday, November 27, 2002 6:34 AM
To: 'vantage@yahoogroups.com'
Subject: RE: [Vantage] Payroll Version 5.0 patch 35

Interesting concept.............glad we let the person who is receiving the
benefit deal with their own taxes instead of taxing all those who don't
............percentages are much better that way. Don't want to have to pay
taxes that DON'T REALLY have to be paid. Editorializing aside.........

Just some questions to help think through the solution....

We have fringe benefits that we deal with this way-annually. But I am
wondering what the IRS viewpoint on insurance premiums are and if they want
the "income" reported at some specified time frame.....like monthly since
premiums are paid monthly?

So are you considering the premiums to be income to the employee in order to
be taxing them on it? and withholding FICA and Fed W/H? How are you
planning on reporting the income? If you don't, won't your 941 be out of
balance?

Had not seen any other responses yet from anyone who is actually doing
this.......seems to me someone had raised this question before...perhaps you
got an off list answer. But any suggestions I could make would need to be
based on answers to the above questions.

Deb Wilmoth
Controller
Reeder & Kline Machine Company, Inc.
Vantage 5.0


-----Original Message-----
From: cmertzus [mailto:cmertz@...]
Sent: Wednesday, November 27, 2002 8:37 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Payroll Version 5.0 patch 35


Our company is looking to tax employees through payroll for employer
paid long term disability premiums. By taxing the employee on the
premium paid by the company for long term disability benefits, the
employee would received untaxed benefit payments in the event of a
disability claim. The theory is that the tax on the premium is
minimal compared to the taxes that would be paid in the event you
actually had an event in which you were dependent on disability
payments.

Has anyone using Vantage payroll taxed employees for benefits not
actually paid to the employee on a check? And if so, how are you
processing that through the payroll? Are you taxing the benefit each
payroll check or on some other basis (quarterly, monthly, etc)

Thank you.

Cheryl Mertz
Milford Enterprises, Inc.
cmertz@...



Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/



[Non-text portions of this message have been removed]




Yahoo! Groups Sponsor
ADVERTISEMENT

<http://rd.yahoo.com/M=237459.2675695.4055211.2225243/D=egroupweb/S=17050071
83:HM/A=1267611/R=0/*http://ad.doubleclick.net/jump/N2524.Yahoo/B1071650;sz=
300x250;ord=1038407723732195?>


Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links

Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service
<http://docs.yahoo.com/info/terms/> .


[Non-text portions of this message have been removed]
5
Oops... Karen beat me to the punch and I concur. A separate pay type
with offsetting deduction handles it. As a bonus it also shows the
employee how much the premiums actually are.
One other point to note... if the company pays the premiums without
the employee paying tax on it, when benefits are paid to the employee
the employer must still make timely matching tax deposits for the
FICA and is also responsible for taxes paid (or not) from the 3rd
party insurer.

*Rob McFarlin, Controller
Accel Group, Inc.
RobM@...


--- In vantage@y..., "Karen Brodniak" <karen.brodniak@w...> wrote:
> We are not doing this here but I have taxed employees on these
types of
> benefits in the past. You will need to set up a payroll type and a
deduction
> for Disability Premiums using the same General Ledger account
number to
> clear the transaction. I believe you can tax them monthly or
annually,
> whichever you prefer. You might want to do it monthly if the annual
amount
> will create a large tax liability. Simply report the amount of the
premium
> in the payroll type and deduct the same amount using the deduction.
The
> result is that the employee will be taxed on the premium amount and
the
> deduction will wash the "wage" back out of your GL.
>
> Karen Brodniak
> Accounting Manager
> Phone: 425-742-7011 x44
> Fax: 425-353-8945
> karen.brodniak@w...
>
> -----Original Message-----
> From: Wilmoth, Deb [mailto:Deb@r...]
> Sent: Wednesday, November 27, 2002 6:34 AM
> To: 'vantage@y...'
> Subject: RE: [Vantage] Payroll Version 5.0 patch 35
>
> Interesting concept.............glad we let the person who is
receiving the
> benefit deal with their own taxes instead of taxing all those who
don't
> ............percentages are much better that way. Don't want to
have to pay
> taxes that DON'T REALLY have to be paid. Editorializing
aside.........
>
> Just some questions to help think through the solution....
>
> We have fringe benefits that we deal with this way-annually. But I
am
> wondering what the IRS viewpoint on insurance premiums are and if
they want
> the "income" reported at some specified time frame.....like monthly
since
> premiums are paid monthly?
>
> So are you considering the premiums to be income to the employee in
order to
> be taxing them on it? and withholding FICA and Fed W/H? How
are you
> planning on reporting the income? If you don't, won't your 941 be
out of
> balance?
>
> Had not seen any other responses yet from anyone who is actually
doing
> this.......seems to me someone had raised this question
before...perhaps you
> got an off list answer. But any suggestions I could make would
need to be
> based on answers to the above questions.
>
> Deb Wilmoth
> Controller
> Reeder & Kline Machine Company, Inc.
> Vantage 5.0
>
>
> -----Original Message-----
> From: cmertzus [mailto:cmertz@m...]
> Sent: Wednesday, November 27, 2002 8:37 AM
> To: vantage@y...
> Subject: [Vantage] Payroll Version 5.0 patch 35
>
>
> Our company is looking to tax employees through payroll for employer
> paid long term disability premiums. By taxing the employee on the
> premium paid by the company for long term disability benefits, the
> employee would received untaxed benefit payments in the event of a
> disability claim. The theory is that the tax on the premium is
> minimal compared to the taxes that would be paid in the event you
> actually had an event in which you were dependent on disability
> payments.
>
> Has anyone using Vantage payroll taxed employees for benefits not
> actually paid to the employee on a check? And if so, how are you
> processing that through the payroll? Are you taxing the benefit each
> payroll check or on some other basis (quarterly, monthly, etc)
>
> Thank you.
>
> Cheryl Mertz
> Milford Enterprises, Inc.
> cmertz@m...
>
>
>
> Useful links for the Yahoo!Groups Vantage Board are: ( Note: You
must have
> already linked your email address to a yahoo id to enable access. )
> (1) To access the Files Section of our Yahoo!Group for Report
Builder and
> Crystal Reports and other 'goodies', please goto:
> http://groups.yahoo.com/group/vantage/files/.
> (2) To search through old msg's goto:
> http://groups.yahoo.com/group/vantage/messages
> (3) To view links to Vendors that provide Vantage services goto:
> http://groups.yahoo.com/group/vantage/links
>
> Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
>
>
>
> [Non-text portions of this message have been removed]
>
>
>
>
> Yahoo! Groups Sponsor
> ADVERTISEMENT
>
>
<http://rd.yahoo.com/M=237459.2675695.4055211.2225243/D=egroupweb/S=17
050071
>
83:HM/A=1267611/R=0/*http://ad.doubleclick.net/jump/N2524.Yahoo/B10716
50;sz=
> 300x250;ord=1038407723732195?>
>
>
> Useful links for the Yahoo!Groups Vantage Board are: ( Note: You
must have
> already linked your email address to a yahoo id to enable access. )
> (1) To access the Files Section of our Yahoo!Group for Report
Builder and
> Crystal Reports and other 'goodies', please goto:
> http://groups.yahoo.com/group/vantage/files/.
> (2) To search through old msg's goto:
> http://groups.yahoo.com/group/vantage/messages
> (3) To view links to Vendors that provide Vantage services goto:
> http://groups.yahoo.com/group/vantage/links
>
> Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service
> <http://docs.yahoo.com/info/terms/> .
>
>
> [Non-text portions of this message have been removed]