Taxable Long Term Disability

Yahoo Archive
1
Set up a pay type for Long Term Disability and attach the required taxes.
Then set up a deduction for Long Term Disability. When preparing payroll,
enter the taxable amount of the insurance on the pay type and enter the same
amount on the deduction. The net affect is that the taxes will be taken out
of the gross. This is the same way you would handle the value of a company
vehicle taxable to an owner or employee, tip reporting, non-cash prizes,
etc.

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

-----Original Message-----
From: cmertzus [mailto:cmertz@...]
Sent: Friday, March 22, 2002 6:06 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Taxable Long Term Disability

Is there anyone using the payroll module who is taxing employees on
long term disability benefits paid for by the employer? How are you
handling this thru payroll and how often (each pay period, monthly,
quarterly) are you taxing the benefit.




Yahoo! Groups Sponsor
ADVERTISEMENT

<http://rd.yahoo.com/M=215002.1818248.3328688.1261774/D=egroupweb/S=17050071
83:HM/A=847665/R=0/*http://ads.x10.com/?bHlhaG9vbW9uc3RlcjcuZGF0=1016805990%
3eM=215002.1818248.3328688.1261774/D=egroupweb/S=1705007183:HM/A=847665/R=1>


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]
2
Is there anyone using the payroll module who is taxing employees on
long term disability benefits paid for by the employer? How are you
handling this thru payroll and how often (each pay period, monthly,
quarterly) are you taxing the benefit.
3
I'm not clear on what you are referring to as disability benefits paid by
the employer....But this is how I see it...

Taxing employees on the insurance premiums paid by the company? No. See
page 29 of the 2002 Circular E - Publication 15.

When the 3rd party insurance company pays benefits (ie. replacement wages)
to someone on disability, then we pay FICA as each check is generated.

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


Is there anyone using the payroll module who is taxing employees on
long term disability benefits paid for by the employer? How are you
handling this thru payroll and how often (each pay period, monthly,
quarterly) are you taxing the benefit.


-


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