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.
Meisha said:Medical + Dental $55.50, LTD $34.50, Life + Accidental Accident $13.50.
Not to make this more complicated, but usually you want your records to clearly show that the employee is paying 100% of life, accidental, and disability insurance. If the employer is paying any part of it, any claim proceeds may be subject to income tax.
On the other hand, that would reduce the amount and tax deduction for the medical portion.