I am trying to setup a Group Insurance Premium. The amount is $207, $103.50 is paid by Employee and $103.50 is paid by Employer
The problem is that the gross salary shows premium paid by the Employer although the benefit is non-taxable. The Pensionable income is correct but the Gross Income is over by the amount of the premium. Therefore when I do the T4, the employee's income is too high. It should be less by the amount of the premium. Is there anyway to fix this other than by manually reducing the Gross Salary by the amount of the premium paid by employee? I see on the record that there is a box for Less Benefit. How do I get this to populate with the $103.50?
Right now I have a Group Insurance Payable for the Emplover's Share $103.50
Employee Deductions are: Medical + Dental $55.50, LTD $34.50, Life + Accidental Accident $13.50. Total $103.50. These are all set up as being Calculated after tax, CPP & EI.
Thanks for your help.
Wouldn't you put this under deductions rather than income since it is a deduction being done with the employee's benefit amount that they are paying.
Do you really need to show the premiums paid by the employer? The employee would be under the deductions and this in the set up allows you to check or un-check the taxes based on what you are doing. If you show the employer's portion of the benefit i would imagine this would need to be in the entitlements tab is that not correct. This would then show only as an entitlement not and income or deduction because it is neither. The entitlement tab shows WCB as well but this is what i would think would work and then it would not show up as extra income.
You need to have a deduction amount of the 103.50 and a an income amount labeled "benefits" for the same amount. this then will go as a taxable benefit but put the income back where it should be.