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1. Go to Payroll>Payroll Payments - Current or Payroll Payments - Future.
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2. Click Create.
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3. Enter the following:
- Employee - Select the appropriate employee from the dropdown
- Compensation - Select the appropriate compensation from the dropdown
- Description - Life Insurance Premium
- Pay Type - Life Insurance Premium
- Effective Date - Leave blank if wanting to be processed the next payroll processed. Otherwise enter a date inclusive of the pay period beginning and ending dates of the payroll you want the payment to be included in
- Units - 1
- Rate - Enter the calculated life insurance premium amount
- Applies For Retirement - Uncheck the checkbox
- Retire Hours - Leave blank
- Supplemental - Leave unchecked
- Supplemental Tax Option - None
Click Save
Panel Payroll Payment - Future
Payroll Payments - Current
Info This pay type represents one kind of non-cash earnings for the employee. This pay type will be treated differently for taxation purposes. Using this non-cash earnings amount, the tax amounts for Medicare and Social Security will be calculated during the Initializing of the pay and Payroll/Payments-Current program. No Federal, Ohio, or OSDI tax amounts will be calculated. All of these will be treated according to the federal rules. The software provides the ability to withhold city tax on non-cash earnings. This can be activated by checking the "Tax Non Cash Earn" field on the city tax record in the Core/Payroll Item Configuration programscreen. Info The Life Insurance premium non-cash earnings amount will not be included in the Total Gross amount on the Pay Report but is added in the 'All Pay' total on the Pay Amount Summary Report. However, the life insurance premium non-cash earnings amount will be included in the adjusted gross figure on the employee's payment because the amount is considered part of the taxable gross even though no tax is being withheld on it. Both the Pay Report and the Pay Amount Summary Report provide a total of all non-cash earnings in the Totals Section - NC1 total on the Pay Report and Other Pay on the Pay Amount Summary Report. This extra total will help in with balancing purposes.
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- 4. Complete the payroll.
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