Follow the procedure that describes your payroll item setup for tracking
taxable group term life insurance.
Set up one company contribution
payroll item for the nontaxable portion of the premium, which pays the
first $50,000 of group term life insurance for any employee. Choose a tax
tracking type of None, because this part of the premium is not reported.
Set up a second company contribution payroll item for the taxable portion of
the premium, which pays the excess over $50,000 of group term life insurance
for an employee. Choose the Taxable Grp Trm Life tax tracking type.
Use both payroll items when setting up employees who have more than $50,000
of employer-paid group term life insurance.
Change the tax tracking for the company contribution payroll item to Taxable
Grp Trm Life.
In QuickBooks 2003, the tax tracking type Taxable Grp Trm Life reports
amounts correctly on payroll tax forms you print from QuickBooks. If you
previously avoided using it because it was for Assisted Payroll subscribers
only, you may use it now.