Term Life Insurance over $50,000 - How to report on W2
(Posted by: Lisa Sick 12/12/2005)

If your company provides over $50,000 of term life insurance to your employees, the amount over $50,000 has to be reported on the W2.
1. Set up a Payroll Deduction Code in (U3MEN1.6) for this term life insurance over 50K.

• Deduction Code that prints on the W2 must be 'C'.
• Box number this deduction prints in on the W2 - should be set to 12 but 13 or 25 also print fine in box 12 on the W2.
  
  1. WITH IN YOUR LAST PAYROLL OF 2005, record this amount in Special Pay on each employee as a positive number. Then the amount will be taxed appropriately.
  2. Also record this amount as a deduction on the employee with the deduction code you set up above. This will deduct that amount back off the employee pay and have the deduction recorded for printing on the W2.
  3. Now you will have this amount on your W2 properly.

For additional help, please contact Support by calling (877)282-6353 or via email at support@agvantage.com.