Group Term Life and other Imputed Income
Homebase supports the ability for you to enter in any Group Term Life (GTL), and Imputed earnings (such as gift cards or gift certificates) right into payroll!
How to calculate taxable Group Term Life
Figure out the total cost by multiplying the monthly cost by the number of months’ coverage at that cost.
Example: If Tom has insurance coverage at $80,000, Tom is 32 and he had coverage all year. Then you would take the cost ($0.08) multiplied by how much in excess ($30K) (since the cost is per 1K, you make it 30) multiplied by months of coverage. So it comes out to $28.80 total to report; 0.08(cost) x 30(excess) x 12(months)
How to enter GTL or Other Imputed Earnings
While in payroll step 1, go to Other Earnings and you should see those 2 earning fields available to use:
*Note* These must be included with other wages as these items are taxable and taxes will need to be calculated and withheld for them.
S-Corp (2% Shareholders Benefits or HSA Reporting)
If you need to report any S-corp benefits for the year, please send an email to payroll@joinhomebase.com with the employee name and benefit amount to be reported for the year.
Other Fringe Benefits or Special Earnings
If you have any other special earnings or benefit to report for the year, please send an email to the Payroll Support team (payroll@joinhomebase.com) with the following information:
- Employee Name
- Type of Earning or Benefit
- Amount
- Tax Breakdown (if applicable)
If you do not have tax breakdown, we need confirmation that you’d like for us to calculate for you. We will not calculate withholding taxes on these adjustments but the wages will be taxable.
Still have questions? Feel free to reach out and we’d be glad to help!
To contact support, click here to log in or email us at payroll@joinhomebase.com
