Problem entering payroll data into quicken


H

Hal

My employer recently changed the statement of earnings that comes
with each paycheck. It now includes GTL-Imputed income. This is a
group life insurance benefit that I will be taxed on so it shows up as
gross income, but I don't actually receive it in cash. So now my
actual net pay does not equal my gross pay less the standard tax
deductions.
Is there a good way for entering this info into quicken? When I tried
entering it, I just listed the imputed income as an after tax
deduction so that my net pay would show what was actually being
deposited into my bank account. Is there a better way to do this?
Also, am using the 2004 premier edition. I tried doing a search in
the program and online for "imputed income" and didn't find any
helpful info.

Thanks for any help,
Hal
 
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D

Dick Weaver

Hal said:
My employer recently changed the statement of earnings that comes
with each paycheck. It now includes GTL-Imputed income. This is a
group life insurance benefit that I will be taxed on so it shows up as
gross income, but I don't actually receive it in cash. So now my
actual net pay does not equal my gross pay less the standard tax
deductions.
Is there a good way for entering this info into quicken? When I tried
entering it, I just listed the imputed income as an after tax
deduction so that my net pay would show what was actually being
deposited into my bank account. Is there a better way to do this?
Also, am using the 2004 premier edition. I tried doing a search in
the program and online for "imputed income" and didn't find any
helpful info.
I think what you have is a taxable fringe benefit. Here is an example
of entering a paycheck with a taxable fringe benefit (the example uses
categories, not overloading of transfers, so simple category totals
provide all the detail for tax reporting and, since each part of salary
is entered, gross salary is the sum of the related parts so any errors
are more likely to be detected).

Example. Salary $1000
Pretax 401k contribution $100.
Pretax dental insurance $50.
Federal taxes withheld $200.
Payroll transfer to savings $10.
Employer makes a matching contribution to 401k $123
Fringe benefit (see Pub 525 "Taxable and Nontaxable Income") $75

The deposit is 1000 -100 -50 -200 -10 = 640.

With items in the same sequence as listed above, the payroll
transaction would look like (I've tried to use descriptive names - in my
own files I would use shorter names and subcategories):

ABC Corp. splits 640
income:salary-tax 850
income:salary-pretax-401k 100
[401k account] -100
income:salary-pretax-dental 50
expense:dental-insurance -50
expense:taxes-federal-withhold -200
[savings account] -10
income:employer-contrib-401k 123
[401k account] -123
income:fringe-benefit-tax 75
income:fringe-benefit-offset -75

The deposit is correct 850 -200 -10 = 640
Salary is correct 850 +100 +50 = 1000
Taxable income is correct 850 taxable salary + 75 fringe benefit= 925
Fringe benefit shows up on tax reports as 75
Elsewhere fringe benefit + offset is 0
-- and simple category totals for the year give useful results.

dick w
 
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H

Hal

The deposit is correct 850 -200 -10 = 640
Salary is correct 850 +100 +50 = 1000
Taxable income is correct 850 taxable salary + 75 fringe benefit= 925
Fringe benefit shows up on tax reports as 75
Elsewhere fringe benefit + offset is 0
-- and simple category totals for the year give useful results.

dick w

Thanks a lot for the info. It was a big help.

Hal
 

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