How to I account for a Taxable Benefit

[bjwhitson]

How do I handle the imputed income associated with our pastors' insurance? We pay the premiums for their life insurance and I need to add $360 to their Salary as imputed income. Can I do that in PC+? I'm using version 11.1

[NeilZ]

How do I handle the imputed income associated with our pastors' insurance? We pay the premiums for their life insurance and I need to add $360 to their Salary as imputed income. Can I do that in PC+? I'm using version 11.1

This does sound like it would be covered under creating a new Payroll Item for a Taxable Benefit you can add per paycheck. However, the Box 12 codes covering insurance payments are for group policies over $50K ... you should check IRS Pub 15 for more info on that code.

As far as including it on a W-2 for 2013, you can enter it when you're ready to print W-2s in box 12, again I would check the IRS pub for the proper code.

[dianeklove]

I have a question about this as well.

Two of our employees, who are not self-employed ministers, also receive life insurance resulting in a small amount needing to be taxed. When I set it up as a taxable benefit, the program deducted the tax amounts for the individuals taxes, but not the equal amount for the employers taxes. As a result it seems my 941 is wrong.

Any help would be greatly appreciated! Thanks

Diane Love
Office Manager
Messiah Lutheran Church
Grand Rapids

[NeilZ]

I have a question about this as well.

Two of our employees, who are not self-employed ministers, also receive life insurance resulting in a small amount needing to be taxed. When I set it up as a taxable benefit, the program deducted the tax amounts for the individuals taxes, but not the equal amount for the employers taxes. As a result it seems my 941 is wrong.

Any help would be greatly appreciated! Thanks

Diane Love
Office Manager
Messiah Lutheran Church
Grand Rapids

If the Item Description for the taxable benefit has checks next to Social Security & Medicare, and you have the employer liability items for SS & Medicare assigned to the employee and you don't see the employee and employer amounts being equal when you look at the Pay Items in Maintain List of Employees, there may be a slight problem with your setup.

Just wondering, which version of Powerchurch are you using ?

[dianeklove]

If the Item Description for the taxable benefit has checks next to Social Security & Medicare, and you have the employer liability items for SS & Medicare assigned to the employee and you don't see the employee and employer amounts being equal when you look at the Pay Items in Maintain List of Employees, there may be a slight problem with your setup.

Yes, the SS & Medi boxes are checked for the taxable benefit item, and yes, the employer liability items are assigned for those employees.

We have version 11.5 installed.

Diane Love
Office Manager
Messiah Lutheran Church
Grand Rapids

[Zaina]

On the employees pay items tab, double click on the employer tax liability items and make sure it is using the corresponding table and not set to a manual amount. If the item is using the appropriate tax table, it should match the employees amounts.

[dianeklove]

Thank you! I think that has fixed the problem.