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.

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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).

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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.

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S-Corp (2% Shareholders Benefits or HSA Reporting)

Employees logged as s-corp owners are NOT eligible for any pre-tax benefits recorded on their profile in Homebase. S-corp benefit recordings must be entered via a manual correction by the Homebase Payroll Support team.

At this time, Homebase does not support s-corp owner benefits being recorded on payroll directly or as a benefit on an employee's profile.

S-corp owner status should be indicated on the employee profile on the Job Details page under Payroll Settings:

If this field is not completed, it does not block an employee from being included in payroll. However, to ensure accuracy of your payroll records, it's recommended to indicate the s-corp shareholder status for any owners as "yes."

Once entered manually by Homebase's Payroll Support team, s-corp owner benefit amounts are recorded on the employee's W-2 in Box 1, Box 14, and Box 16.

Read more about s-corp owner benefits with Homebase Payroll in our help center here: S-Corp Owner Benefits Recording in Homebase Payroll

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Other Fringe Benefits or Special Earnings

Please note that Homebase does not support this functionality directly within the application. However, if you have any special earnings or benefits to report for the year, please reach out to the Payroll Support team with the following information:

• Employee Name
• Type of Earning or Benefit
• Amount
• Tax Breakdown (if applicable)

Note: 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.