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ryanowens1
November 28, 2023
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Imputed taxable GTLI benefit showing in Gross Salary expense (QBO)

  • November 28, 2023
  • 1 reply
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Hi folks,

We provide company-paid GTLI, and we've set up a Pay Type (QB Online) to report the imputed taxable benefit on paychecks and W2s. The problem is that these amounts are showing up in our Gross Salary expense account, yet they're not true expenses. Someone may receive $4.50 worth of life insurance each month, which is taxable, but we're not actually paying anyone that $4.50 (we are paying the premiums, but that expense is tracked differently). The result is that our QB Gross Salary expense does not reflect the true salary being paid out of our bank account. It's a pain to adjust this every year. Is there a different way to set up GTLI so this doesn't happen?

Best answer by CharleneMaeF

I understand the importance of having the correct salary being paid out reflected in your bank account and the Gross Salary expense account, ryanowens1.

 

Yes. In QuickBooks Online, there is a different way to avoid the GTLI showing under the Gross Salary expense account.

 

Do you have a separate account that you want to use to track the GTLI? If so, I'm here to assist you in setting this up in QuickBooks Online.

 

  1. Go to the Gear icon and select Payroll settings.

  2. Scroll down to the bottom, then click the pencil icon beside Accounting. 

  3. On the Accounting Preferences page, tick the pencil icon beside Wage expenses.

  4. Under the Where do you track employee wages in your QuickBooks chart of accounts?, hit the Each employee's wages are posted to different types of accounts (salary, contractor, and so on) button.

  5. Move the cursor down until you reach the Group Team Life Insurance section.

  6. Choose the account you want to associate with GTLI.
  7. Make sure to add the account for the other pay types.
  8. After that, click Save, then Done.

 

For more details about setting up and reporting Group-Term Life Insurance, please see this article: GTLI.

 

Attending to your concerns is our main priority here in the Community, so please don't hesitate to ask us more questions about payroll by leaving a reply below. Take care and have a good one.

1 reply

C
CharleneMaeFAnswer
November 28, 2023

I understand the importance of having the correct salary being paid out reflected in your bank account and the Gross Salary expense account, ryanowens1.

 

Yes. In QuickBooks Online, there is a different way to avoid the GTLI showing under the Gross Salary expense account.

 

Do you have a separate account that you want to use to track the GTLI? If so, I'm here to assist you in setting this up in QuickBooks Online.

 

  1. Go to the Gear icon and select Payroll settings.

  2. Scroll down to the bottom, then click the pencil icon beside Accounting. 

  3. On the Accounting Preferences page, tick the pencil icon beside Wage expenses.

  4. Under the Where do you track employee wages in your QuickBooks chart of accounts?, hit the Each employee's wages are posted to different types of accounts (salary, contractor, and so on) button.

  5. Move the cursor down until you reach the Group Team Life Insurance section.

  6. Choose the account you want to associate with GTLI.
  7. Make sure to add the account for the other pay types.
  8. After that, click Save, then Done.

 

For more details about setting up and reporting Group-Term Life Insurance, please see this article: GTLI.

 

Attending to your concerns is our main priority here in the Community, so please don't hesitate to ask us more questions about payroll by leaving a reply below. Take care and have a good one.

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