Life Insurance Tax Calculator

Transcription

1 Life Insurance Tax Calculatr User Guide Fr Micrsft Dynamics GP Versin N. Kickap Lincln, Illinis integrity-data.cm **Updated Dcumentatin** visit ur website t check fr updated user guides.

2 Cpyright Manual cpyright 2014 Integrity Data. All rights reserved. Limitatin f Liability The cntent f this manual is furnished fr infrmatinal use nly, is subject t change withut ntice and shuld nt be cnstrued as a cmmitment by Integrity Data. Integrity Data assumes n respnsibility r liability fr any errrs r inaccuracies that may appear in this manual. Neither Integrity Data nr anyne else wh has been invlved in the creatin, prductin r delivery f this dcumentatin shall be liable fr any indirect, incidental, special, exemplary r cnsequential damage, including but nt limited t any lss f anticipated prfit r benefits, resulting frm the use f this dcumentatin r sample cde. Publicatin Date May 2015 ii

3 Table f Cntents Intrductin... 5 Prcess... 5 Quick Setup Steps... 6 Installatin Overview... 7 Prerequisite... 7 Files Installed... 7 Install Ntes... 7 Server/Client... 7 Manual Install Registratin Activatin Manager Windw Test and/r Histrical Cmpanies Versin Infrmatin Security Settings Setup Windws Life Insurance Tax Cde Setup Cmpensatin Cde Setup windw Life Insurance IRS Table Scenaris Scenari 1: Using HR integratin with a salaried emplyee Setup: Slutin: Scenari 2: Example f an hurly emplyee with n HR integratin Setup: Slutin: Scenari 3: Example f a salaried emplyee with n HR integratin Setup: Slutin: Hints, Essentials and FAQs Activatin Manager Messages Life Insurance Tax Calculatr Messages Deactivate Prduct Disable Inactivate Uninstall iii

4 Cntact Infrmatin iv

5 Intrductin When an emplyee receives a life insurance benefit such as grup term life insurance, the pssibility exists that the emplyee will be taxed as a result. A certain prtin f the benefit is cnsidered imputed incme and the recipient is taxed as if the benefit were taxable incme. The amunt cnsidered imputed incme can vary, as can the tax rate and the threshld amunt which is exempt. The Life Insurance Tax calculatr is a tl that allws the user t setup and cnfigure the prduct t: determine the emplyer cst f prviding the benefit amunt t the emplyee, split the amunt between the taxable and exempt benefit and update the emplyee benefit maintenance recrds fr taxable and exempt benefits fr use in payrll. setup different LIT cde recrds t handle multiple scenaris (see scenaris sectin), integrate with Micrsft Dynamics GP Human Resurces Prcess Once the setup infrmatin has been cnfigured and saved the user either: selects Update n the Life Insurance Tax Cde Setup windw r if the LIT Cde is marked t aut update, then prcesses payrll. The system then determines which emplyees are t have their maintenance recrds adjusted. The system then prceeds t calculate the benefit amunt fr the emplyees. This can be dne in different ways depending n the life insurance tax calculatr setups. The prcess is as fllws: 1. First cmpensatin n which cverage is based must be determined. This is either dne by marking the Use Primary Pay Cde fr Cverage checkbx r by specifying a value in the Pay Cde fr Cverage Calculatin field. The system uses this infrmatin t determine pay/cmpensatin amunt. 2. Secndly, the system determines the ttal cverage amunt and further defines the cverage amunt per pay perid. This is either dne by marking the Use HR Premiums & Increments checkbx r specifying values in each f the Cmpany Premium Rate Pay Perid, Premium Increment and Factr fields. The system uses this infrmatin t determine hw the cverage will be divided between the taxable and exempt benefits. 3. Thirdly, the system separates the premium fr cverage amunt per pay perid int taxable and exempt amunts. It des this by first determining the taxable cst t the emplyee using the Life Insurance IRS table, ttal cverage amunt, payrll frequency, and benefit excess minimum. The resulting calculatin yields the taxable benefit amunt (piece f the premium that is taxable). 4. Lastly the system updates the emplyee benefit maintenance recrds fr the taxable and exempt benefits. 5. The system can then calculate payrll as nrmal and the crrect taxes will be reflected. P a g e 5 34

6 Quick Setup Steps Define an LIT Cde which cntains the cnfiguratin settings. Set the filter criteria t apply t the apprpriate emplyees t include in the calculatin fr the LIT Cde. Determine which methd will be used t define the cmpensatin n which cverage is based: Primary Pay Cde Mark the Use Primary Pay Cde fr Cverage Custm Defined Specify values fr Pay Cde fr Cverage Calculatin and Payrll Frequency Determine which methd will be used t derive premium calculatins: Integratin with HR Mark the Use HR Premiums and Increments Custm Calculatin Specify values fr Cmpany Premium Rate Pay Perid, Premium Increment, and Factr Define the Excess Benefit Minimum amunt. This is used t determine whether the Life Insurance Tax calculatr needs t run fr a specific scenari r nt. Define Taxable Benefit ID and Exempt Benefit ID fields. The Exempt Benefit ID field is uses t determine ttal cst f cverage. P a g e 6 34

7 Installatin Overview This sectin discusses the prerequisites; lists the files installed and g thrugh the install prcess. Prerequisite The prerequisite fr Life Insurance Tax Calculatr is: Micrsft Dynamics GP Payrll Micrsft Dynamics GP Human Resurces **ptinal** Files Installed The fllwing files are installed: GP Flder (C:\Prgram Files\Micrsft Dynamics\GP2015) GTLI6833.cnk r GTLI6833.dic Applicatin.IntegrityDataActivatin.dll Integrity.Registratin.Cnstructr.dll Integrity.Registratin.Addin.dll IDA6537.cnk Dcumentatin Flder (C:\Prgram Files\Micrsft Dynamics\GP2015\Dcumentatin) Life Insurance Tax Calculatr GP 2015 User Guide.pdf Install Ntes Prir t installing cmplete these steps: Cnfirm all users are lgged ut f Micrsft Dynamics GP Cmplete all payrll runs and validate n payrll runs are in prcess Make a backup f the cmpany and dynamics databases Server/Client T install Life Insurance Tax Calculatr dwnladed the exe file frm ur website. Once the files have been dwnladed, yu can run them n the Server and/r Client Installatins. The prduct will need t be installed n all machines that prcess payrll. If yu will send with using Micrsft Outlk then dwnlad the Outlk Setup.exe in additin t the Integrity GP 2015 Setup.exe Cmplete the steps required at the Server and/r Client level t create the necessary Micrsft SQL Server Cmpnents. Creating the Micrsft SQL Server Cmpnents needs t be perfrmed n a single cmputer, typically the server. P a g e 7 34

8 1. Right click Integrity Data GP2015 Setup.exe file and select Run as Administratr. If yu d nt see this ptin, hld the shift key dwn and right click. Cmplete the steps in the wizard P a g e 8 34

9 2. Verify the GP directry is crrect if it is nt select Change 3. Select Custm t chse t install nly the specific prducts yu purchased. P a g e 9 34

10 4. Select Activatin Cmpnents t nly install activatin manager files. This ptin will nt install prducts and it is typically run nly t fix an errr with activatin manager. 5. Select All Cmpnents t install all Integrity Data prducts. The prducts yu did nt purchase will register with a 30-day trial perid. If yu are upgrading yu will be prmpted t uninstall the lder versin, select y. If yu have multiple prducts, it will uninstall all prducts. 6. Select the prduct(s) t install, if installing multiple prducts, select all that need t be installed. P a g e 10 34

11 P a g e 11 34

12 7. Launch Micrsft Dynamics GP If prmpted t include new cde, chse yes. 9. Lgin as the system administratr fr each cmpany t create the SQL Server cmpnents. 10. The system will aut activate the prducts yu have purchased if yu have access t the internet n the machine. If yu receive a message Activatin Manager failed cntact supprt@integritydata.cm and include a screensht f the Activatin Manager windw t receive manual keys. BEST PRACTICES Install is nt a requirement n the Server; hwever it is recmmended. Install updated versin n previusly installed Client machines. P a g e 12 34

13 Manual Install If the user encunters errrs during the installatin, cmplete the fllwing steps t manually install Life Insurance Tax Calculatr: 1. Cntact supprt@integrity-data.cm t receive the manual install files fr the prduct(s). 2. Cpy and paste the fllwing files int the apprpriate lcatins. GP Flder (C:\Prgram Files\Micrsft Dynamics\GP) GTLI6833.cnk IDA6537.cnk Applicatin.IntegrityDataActivatin.dll Integrity.Registratin.Cnstructr.dll Integrity.Registratin.Addin.dll Dcumentatin Flder (C:\Prgram Files\Micrsft Dynamics\GP\Dcumentatin) Life Insurance Tax Calculatr GP 2015 User Guide.pdf (C:\Prgram Files\Micrsft Dynamics\GP\Dcumentatin) 3. Edit the Dynamics.exe.cnfig Navigate t the GP flder (C:\Prgram Files\Micrsft Dynamics\GP2015) Backup the Dynamics.exe.cnfig by making a cpy and saving the cpy **Imprtant** Open Dynamics.exe.cnfig in Ntepad Find the <addin> and under <Dynamics> cpy and paste the fllwing: <addin name="idkeymanageraddin" type="integrity.registratin.addin.gpaddin,integrity.registratin.addin,versin= ,Culture=neutral,PublicKeyTken=b7ed37edf026e3bc"/> Under <DynamicsGPweb> cpy and paste the fllwing: <addin name="idkeymanageraddin" type="integrity.registratin.addin.gpaddin,integrity.registratin.addin,versin= ,Culture=neutral,PublicKeyTken=b7ed37edf026e3bc"/> P a g e 13 34

14 4. Launch Micrsft Dynamics GP. 5. Lgin as the system administratr fr each cmpany t create the SQL Server cmpnents. P a g e 14 34

15 Registratin The system autmatically activates the prduct during the lg in prcess. If the activatin was successful, the user will nt receive any messages. Hwever, if the activatin prcess was unsuccessful the user will receive a message. If the activatin prcess fails the user needs t pen the Activatin Manager windw t activatin the prduct. Activatin Manager Windw T pen the Activatin Manager windw, within the Navigatin Pane select Administratin. In the Cntent Pane, select Setup. Under the heading System, click Activatin Manager. Micrsft Dynamics GP > Tls > Setup > System Activatin Manager The Site Name defaults frm the sessin infrmatin n the Abut Micrsft Dynamics GP windw. Frm the Prduct drp-dwn list the user may select the prduct they wish t activate and review prduct infrmatin. Once the prduct is selected the fllwing fields display: Installed Versin Current versin number installed Trial Expiratin Date Date f the trial expiratin perid typically 15 days, if applicable Activatin Status Current status f the prduct Permanent Prduct has been purchased P a g e 15 34

16 Trial Prduct has been issued a trial perid Deactivated Prduct has been deactivated Current Emplyees This cunt defaults frm the sessin infrmatin n the Abut Micrsft Dynamics GP windw. The cunt des nt include inactive emplyees r emplyees in a Test r Histrical cmpany. If the current emplyee cunt is incrrect validate Test r Histrical cmpanies are named crrectly. Emplyees Allwed The number f emplyees allwed befre the prduct will be inactivated. If the Current Emplyees exceeds the Emplyees Allwed the system will deactivate the prduct. The scrlling windw cntains a list f all cmpanies; by default the prduct is active fr all cmpanies. If the user wuld like t inactivate a cmpany unmark the cmpany checkbx. The Aut Activatin ptin may be selected if the user receives a message at lg in stating the prduct is nt activated. When the user selects the Aut Activatin ptin the system will attempt t autmatically activate the prduct. Once the Aut Activatin prcess is cmplete the system will display the Activatin Messages. Fr a detailed list f activatin messages see the Activatin Manager Messages sectin. The Manual Activatin ptin is used t manually enter a Tken. The user wuld nly manually enter a tken if they were sent a tken by Integrity Data. Select the OK buttn t clse the windw. Test and/r Histrical Cmpanies Registratin will nt cunt the active emplyees in Test r Histrical cmpany databases if the Cmpany Name is named crrectly, specifically at the end f the Cmpany Name the user must append the fllwing: <TEST> r <HISTORICAL>. See examples belw: Dextrdinary, Inc. <TEST> Dextrdinary, Inc. <HISTORICAL> T access and mdify the Cmpany Name pen the Cmpany Setup windw via Micrsft Dynamics GP > Tls > Setup > Cmpany > Cmpany when lgged int the Test r Histrical Cmpany that needs mdified. Versin Infrmatin T btain the latest Life Insurance Tax Calculatr versin infrmatin, visit ur website. Within Micrsft Dynamics GP verify the versin fr Life Insurance Tax Calculatr by selecting the Help Buttn, select Abut Micrsft Dynamics GP and then select the Optins buttn. Click OK until the Life Insurance Tax Calculatr windw appears. P a g e 16 34

17 Security Settings The Security Task Setup windw may be used t grant r restrict access t the Life Insurance Tax Calculatr windws. T pen the windw, select the Micrsft Dynamics GP menu, select Tls, select Setup, select System, select Security Tasks and enter the system passwrd. 1. Select the apprpriate Task items. T identify the apprpriate task item cmplete the steps belw: Open the User Security Setup windw (Micrsft Dynamics GP > Tls > Setup > User Security), select the apprpriate user and make a nte f the Security Rle ID assigned t the user. Open the Security Rle Setup windw (Micrsft Dynamics GP > Tls > Setup > Security Rles), select the Rle ID that has been assigned t the user and make nte f the Security Task ID assigned t the Rle. Use this Task ID t grant security t the Life Insurance Tax Calculatr. NOTE: The mst cmmn Task ID used is TRX_PAYRL_004 Print Payrll Checks 2. Select Life Insurance Tax Calculatr fr the Prduct. 3. Select Windws fr the Type and select 3rd Party fr the Series. 4. Use the Access List t grant r restrict access t individual items. T grant r restrict access t an item fr this Task ID, click the checkbx t mark r unmark the item. Click the Mark All buttn t grant access t all items in the list r click the Unmark All buttn t restrict access t all items in the list. 5. Click File > Print t print the Security Task Setup Reprt fr the selected Task ID. 6. Chse OK t save yur changes. Life Insurance Tax Calculatr > Windws > 3rd Party > Access List APR Main Menu Life Insurance IRS Table Life Insurance Tax Cde Setup LIT Cdes P a g e 17 34

18 Setup Windws Life Insurance Tax Cde Setup T pen the Life Insurance Tax Cde Setup windw, within the Navigatin Pane select HR & Payrll, click Setup within the Cntent Pane, then under the heading Payrll, select Life Insurance Tax Calculatr. The Life Insurance Tax Cde Setup windw allws the user t define the specific infrmatin used t calculate the taxable and exempt benefit amunt and update the taxable and exempt benefit maintenance recrd. Micrsft Dynamics GP > Tls > Setup > Payrll > Life Insurance Tax Calculatr Select an existing LIT Cde r create a new LIT Cde. Enter a Descriptin f the Life Insurance Tax Cde. Specify the range f emplyees t be included in the Life Insurance Tax Calculatin by using the fllwing filter criteria. Emplyee ID P a g e 18 34

19 Department Psitin Emplyee Class Emplyment Type Cmpany Premium Rate Pay Perid is the fixed premium per blck f insurance. Fr example, $1.25 per bi-weekly pay perid per $5,000 f insurance. The Cmpany Premium Rate = $1.25. Enter the amunt fr the Premium Increment fr the life insurance plan. The Factr is a multiple f the emplyee s annual salary and used t calculate the ttal cverage amunt. The Factr Applies T Single, Variable r Bth calculatins when using Cmpensatin Cde fr Cverage. Fr example, if the ttal cst f cverage is 2 times the salary pay cde plus the average f the last 6 mnths cmmissin the Factr Applies T nly the salary pay cde. In this example, select single thus the system wuld nly apply the 2 times factr t the salary pay cde. If the system shuld apply the 2times factr t bth the Salary and Cmmissin then select bth. Fr mre infrmatin n single verse variable calculatins see Cmpensatin Cde Setup windw. The Pay Cde fr Cverage Calculatin field is used t determine the cmpensatin n which cverage is based. The Payrll Frequency is used in the tax calculatin t determine the cst f cverage per pay perid. Select the Pay Cde fr Cverage, fr mre infrmatin see Cmpensatin Cde Setup windw. Enter an Additinal Amunt t be applied t the ttal cverage amunt. Fr example, if the ttal cverage is 2times the salary plus $50,000 then enter the additinal $50,000 in the additinal amunt field. Benefit Excess Minimum is the amunt f life insurance that is cnsidered exempt frm tax. Cverage amunt abve the Benefit Excess Minimum will be used t calculate the taxable premium. The Taxable Benefit ID is the Life Insurance Benefit Cde that is updated with the taxable benefit amunt. The Exempt Benefit ID is the Life Insurance Benefit Cde that is updated with the exempt benefit amunt. This field is used t calculate ttal cst f cverage. When the user checks the Use Full Premium fr Exempt Amunt the system will break the premium dwn int taxable and exempt pieces as per the functinality f the calculatr. Hwever, the system will verwrite the nrmal exempt amunt with the full premium amunt. P a g e 19 34

20 If Human Resurces is installed and registered the user has the ptin t determine the ttal cverage amunt by marking the Use HR Premiums and Increments checkbx. If the Use Primary Pay Cde fr Cverage checkbx is marked the system will use the primary pay cde t calculate the cmpensatin n which cverage is based. P a g e 20 34

21 Cmpensatin Cde Setup windw T pen the Cmpensatin Cde Setup windw, within the Navigatin Pane select HR & Payrll, click Setup within the Cntent Pane, then under the heading Payrll, select Life Insurance Tax Calculatr then frm the GOTO n the Life Insurance Tax Calculatr windw select Cmpensatin Cde Setup. The Cmpensatin Cde Setup windw allws yu t setup multiple pay cdes and calculatins t calculate the ttal cverage amunt fr an emplyee. Fr example, if the ttal cverage amunt is 2 times the salary plus an average f the last 12 mnths cmmissins yu wuld use a cmpensatin cde t calculate the ttal cverage amunt. Select an existing Cmpensatin Cde r create a new Cmpensatin Cde. Enter a descriptin fr the Cmpensatin Cde. Use Simple calculatin fr pay cdes f type salary and hurly. Enter the Pay Cde fr the Simple calculatin. Fr hurly, the system will use the rate f the pay cde times the wrk hurs per year times the percentage defined by the user. Fr salary, the system will annualize the salary times the percentage defined by the user. P a g e 21 34

22 Enter the percent t be multiplied by the annualized pay. Fr example, if the 50% f an emplyee s salary plus an average f the last 6 mnths cmmissin will determine the amunt t be factred fr ttal cverage enter 50% in the percent field. Then add the cmmissin based n previus 6 mnths. The system will calculate the amunt fr bth and sum them tgether. On the Life Insurance Tax Calculatr windw if the factr applies t bth the system will apply the factr t bth the salary and cmmissin calculatin. Use variable calculatins fr pay cdes f type Cmmissin, Piecewrk, Other, Charged Tips and Reprted Tips. The system will apply a calculatin based upn the user defined Methd, Calculatin, Unit and Number. Select the Pay Cde t apply the calculatin. The calculatin will be based upn the user defined Methd Calculatin, Unit and Number. Select Average r Actual fr the methd. Fr Average, the system will calculate the average amunt based n either year t date r previus amunts based upn the users calculatin selectin. Fr Actual, the system will determine the year t date cmpensatin amunt r previus days r mnths amunt based n user defined unit and number fields. Select YTD r Previus fr the Calculatin Fr YTD, the system will determine the year based n the current user date. It will lk at payrll histry and current pay run (if aut update is selected and calculate Life Insurance Tax Calculatr is being run during build) fr the year t determine an average r actual amunt based methd. Fr Previus, the system will lk at the previus mnths r days based n the unit and number selected. Select Mnth r Days fr the Unit. Fr Mnth, the system will lk at the specified mnths based n the number selected. Fr Days, the system will lk at the specified days based n the number selected. Enter the Number f Mnths r Days the calculatin will use t determine the average r actual amunts. P a g e 22 34

23 Life Insurance IRS Table T pen the Life Insurance IRS Table windw, within the Navigatin Pane select HR & Payrll, click Setup within the Cntent Pane, then under the heading Payrll, select Life Insurance IRS Table. The user will have the ability t cnfigure the premium rate and crrespnding age range in the Life Insurance IRS Table. Fr the current IRS taxable rates g t the IRS Dcument Publicatin 15b and select p15b.pdf. Micrsft Dynamics GP > Tls > Setup > Payrll > Life Insurance IRS Table P a g e 23 34

24 Scenaris Scenari 1: Using HR integratin with a salaried emplyee Setup: Use HR Premiums and Increments is marked Use Primary Pay Cde fr Cverage is marked HR Life Insurance Setup has a Life Insurance Cde called LIFENT with a Factr f 2 and a Fixed Premium f $1.25 per pay perid per $5,000. LIFETX has already been set up as a cde fr the taxable prtin f the life insurance csts. Slutin: Adam Barr is 39 years ld and is an emplyee at Fabrikam, Inc. His salary is $75,000 per year and he is paid biweekly. As part f the benefit package he receives grup term life insurance cverage. The Life Insurance Calculatr prcess handles the tax implicatins accrding t the fllwing: The annual wage must be determined; which in this case is $75,000 per year. This infrmatin is gathered frm the primary pay cde fr the emplyee. Cverage fr the year must be determined. The LIFENT HR setup recrd shws factr f 2.0. Thus the cverage amunt is set t $150,000 in the LIFENT HR Enrllment Recrd. P a g e 24 34

25 Micrsft Dynamics GP will calculate the premium amunt accrding t HR functinality. The result is $37.50 per pay perid. This is the ttal cst f the premium per pay perid. The system must split $37.50 int taxable and exempt. The taxable prtin is calculated by taking the cverage amunt and subtracting the Benefit Excess Minimum n the Life Insurance Tax Cde Setup windw. In this case the cverage is $150,000 per year minus $50,000 Benefit Excess Minimum. This reflects the nrmal $50,000 exempt amunt allwed by the IRS but culd change and is thus cnfigurable n the setup windw. Nw the system will take the remaining $100,000 and multiply by the rate we find n the schedule fr a 39 year ld in the Life Insurance IRS Table windw (.09). Then divide by 1,000 (as per IRS rules) this yields a result f $9 which is the taxable mnthly cst f cverage accrding t the IRS. It is expressed in terms f mnths but we have a biweekly pay perid specified in the Life Insurance Tax Cde Setup windw (Payrll Frequency field). Cnverting this mnthly t biweekly means $9 multiple by 12 and then dividing by 26. This yields $4.15. S the taxable prtin f ur $37.50 premium per pay perid is $4.15. The exempt amunt will be $ The system update the payrll benefit maintenance recrds fr the LIFETX t reflect a $4.15 amunt in premium and the LIFENT t reflect a $33.35 amunt in the premium. P a g e 25 34

26 Scenari 2: Example f an hurly emplyee with n HR integratin Setup: Use HR Premiums & Increments is nt marked Use Primary Pay Cde fr Cverage is nt marked. A Life Insurance recrd exists fr LIFENT designated fr the exempt prtin. LIFETX has already been set up as a cde fr the taxable prtin f the life insurance csts. Slutin: Adam Barr is 65 years ld and splits his time evenly between sales and technical writing. His primary pay cde is sales but he earns a rate f $45.15 per hur fr technical writing. He is still paid biweekly. As part f the riginal benefit package he receives grup term life insurance cverage based n his wrk as a technical writer. The Life Insurance Calculatr prcess handles the tax implicatins accrding t the fllwing: The annual wage must be determined. The system takes the technical writer hurly wage f $45.15 and multiplies it by 2080 t annualize the wage. This results in $93,912 per year. Cverage amunt requires three key pieces f infrmatin specified n the Life Insurance Tax Cde Setup windw. Cmpany Premium Rate Pay Perid = 1.00 Premium Increment = $5,000 P a g e 26 34

27 Factr = 3 The salary is multiplied by a factr f 3 t arrive at the Cverage amunt f $281,736. Since increments are set at $5,000 the adjusted cverage amunt is runded t the next highest increment $285,000. Frm here, Micrsft Dynamics GP will calculate the premium per pay perid (cst t emplyer) by taking the $285,000 dividing by the increment $5,000 and multiplying by the cmpany premium rate f 1.0 the result is $57 per pay perid. This is the ttal cst f the premium per pay perid. The system must split the $57 int taxable and exempt. The taxable prtin is calculated by taking the cverage amunt and subtracting the Benefit Excess Minimum n the Life Insurance Tax Cde Setup windw. In this case the cverage is $285,000 per year minus $50,000 Benefit Excess Minimum. Nw the system will take the remaining $235,000 and multiply by the rate we find n the schedule fr a 65 year ld in the Life Insurance IRS Table windw (1.27). Then divide by 1,000 (as per IRS rules) this yields a result f $ which is the taxable mnthly cst f cverage accrding t the IRS. It is expressed in terms f mnths but we have a biweekly pay perid specified in the Life Insurance Tax Cde Setup windw (Payrll Frequency field).t cnvert the mnthly premium t biweekly we multiply $ by 12 resulting in $3, then divide by 26. This yields $ S the taxable prtin f ur $57 premium per pay perid is $ This leaves a negative ($-80.75) as the exempt amunt. Indeed Adam is being taxed n an amunt which exceeds the ttal premium. This is a pssible result given IRS rates increase dramatically after age 65. The system updates the payrll benefit maintenance recrds fr the LIFETX t reflect a $ amunt in premium and the LIFENT t reflect a $ amunt in the premium. P a g e 27 34

28 Scenari 3: Example f a salaried emplyee with n HR integratin Setup: Use HR Premiums & Increments is nt marked Use Primary Pay Cde fr Cverage is nt marked. A Life Insurance recrd exists fr LIFENT designated fr the exempt prtin. LIFETX has already been set up as a cde fr the taxable prtin f the life insurance csts. Slutin: Adam Barr is 34 years ld and is a salaried web designer making $47,500 semiannually with a weekly pay perid. The Benefit package des include a lt f life insurance cverage hwever, with a factr f 4 times the annual salary. Increments are set t $5,000 and the premium rate per pay perid is $.50. The Life Insurance Calculatr prcess handles the tax implicatins accrding t the fllwing: First the salary rate must be annualized which the system calculates at $95,000. Then multiplying it by 4 yields the annual cverage f $380,000 in life insurance. Frm here the system must determine what the cst t the emplyer is per pay perid fr this cverage. Since increments are set at $5,000 the per pay perid cst f cverage amunt is defined as $380,000 divided by $5,000 multiplied by the Cmpany Premium Rate Pay Perid ($.50) t arrive at $38. This is the ttal cst f the premium per pay perid. P a g e 28 34

29 Nw the system must split the $38 int taxable and exempt amunts. The taxable prtin is calculated by taking the cverage amunt and subtracting the Benefit Excess Minimum n the Life Insurance Tax Cde Setup windw. In this case the cverage is $380,000 per year minus $50,000 benefit excess minimum. Nw the system will take the remaining $330,000 and multiply by the rate we find n the schedule fr a 34 year ld in the Life Insurance IRS Table windw (.08). Then divide by 1,000 (as per IRS rules) this yields a result f $26.40 which is the taxable mnthly cst f cverage accrding t the IRS. It is expressed in terms f mnths but we have a weekly pay perid specified in the Life Insurance Tax Cde Setup windw (Payrll Frequency field). Cnverting this mnthly t biweekly means multiply by 12 and dividing by 52. This yields $6.09. S the taxable prtin f ur $26.40 premium per pay perid is $6.09. The remainder is $20.31 as the exempt amunt. The system updates the payrll benefit maintenance recrds fr the LIFETX t reflect a $20.31 amunt in premium and the LIFENT t reflect a $6.09 amunt in the premium. P a g e 29 34

30 Hints, Essentials and FAQs 1. If the user wants the system t accunt fr changes in emplyee salary r age autmatically during the payrll prcess then mark the Aut Update checkbx fr the LIT Cde n the Life Insurance Tax Cde Setup windw. 2. If the user wants t manually accunt fr changes in emplyee salary r age then unmark the Aut Update checkbx fr the LIT Cde n the Life Insurance Tax Cde Setup windw. 3. When the user marks the Use Full Premium fr Exempt Amunt the system will break the premium dwn int taxable and exempt pieces as per the functinality f the calculatr. Hwever, the system will set the exempt amunt t the full premium amunt. When using this ptin it is advisable fr the user t set up psting accunt setup such that the benefit expense and benefit payable accunts are set t pst t the same accunt fr the taxable prtin f the premium. This will ensure that accunts are kept in balance. 4. Since the IRS dictates imputed incme based n cverage amunt irrespective f actual cst f cverage; it is pssible that the system will calculate a negative amunt fr exempt prtin when the taxable benefit (calculated by IRS) exceeds ttal benefit cst. 5. A user may have Micrsft Dynamics GP HR installed but still chse nt t integrate with it fr purpses f the Life Insurance Tax Calculatr. In these cases a user can still make use f the Use Primary Pay Cde fr Cverage check bx even thugh the Use HR Premium & Increments checkbx is unchecked. The system will still find the primary pay cde and, althugh HR functinality will nt be used t calculate the premium, the system will use the specified values in Life Insurance Tax Cde Setup windw instead. 6. The Exempt Benefit will be used t calculate ttal cst f cverage. P a g e 30 34

31 Activatin Manager Messages Activatin Failed: Trial invalid r trial perid expired Situatin: The trial perid has expired fr the prduct. Slutin: Cntact sales@integrity-data.cm and request additinal trial perid r purchase the prduct. Activatin Failed: Site name des nt match this installatin Situatin: The site name des nt match the tken which was issued. Slutin: Send supprt@integrity-data.cm a screensht f the Activatin Manager windw with the errr message displayed s the tken can be updated with the crrect site name. Activatin Failed: Prduct Name des nt match this installatin Situatin: The prduct name des nt match the tken which was issued fr a prduct. Slutin: Send supprt@integrity-data.cm a screensht f the Activatin Manager windw with the errr message displayed s the tken can be updated with the crrect site name. Trial perid fr Negative Payrll Transactins has expired Situatin: The trial perid has expired fr the prduct. Slutin: Cntact sales@integrity-data.cm and request additinal trial perid r purchase the prduct. Emplyees Allwed has been exceeded Situatin: The current emplyee cunt has exceeded the emplyees allwed. Slutin: Cntact sales@integrity-data.cm t upgrade t the next tier. Activatin Failed: Unable t cntact web service. Activate manually r revert t previus prduct dictinary Situatin: The system culd nt make a cnnectin t the web service. Slutin: Cntact supprt@integrity-data.cm fr assistance. Activatin Failed: Prduct has been deactivated Situatin: The prduct has been deactivated. Slutin: Cntact supprt@integrity-data.cm fr assistance. Upgrade Failed: Enhancement Plan perid expired. Renew Enhancement Plan r revert t previus prduct versin. Situatin: User attempted t upgrade a prduct when their enhancement plan was expired. Slutin: Cntact sales@integrity-data.cm t renew the enhancement plan. P a g e 31 34

32 Life Insurance Tax Calculatr Messages Message: One r mre benefit cdes specified lacks a setup recrd. Yu must create a setup recrd fr each benefit. Situatin: User attempted t specify a benefit cde which did nt exist in the system. Slutin: Select a new benefit cde r create the desired benefit cde frm benefit setup. Message: One r mre Taxable r Exempt Benefit ID Cdes are nt currently defined in GP Human Resurces. The update prcess cannt cntinue Situatin: User attempted t use premiums and increments frm HR when the benefits t be updated d nt exist in HR. Slutin: Setup the benefit within HR. Message: One r mre emplyees have n primary pay cde defined. If yu cntinue, benefit recrds fr thse emplyees will nt be updated. Situatin: User attempted t use primary Pay Cdes fr a calculatin when ne r mre primary pay cdes were nt defined. Slutin: Setup the primary pay cde and assign t the emplyee r unmark the user primary pay cde ptin. Message: One r mre emplyees have n birth date defined. The update prcess cannt cntinue Situatin: User attempted t run an update fr emplyee(s) wh had n birth date defined. Slutin: Open the emplyee maintenance recrd and define the emplyee s birth date. Message: Pay Cde fr Cverage Calculatin must be f type hurly r salary Situatin: User attempted t enter a pay cde f a type ther than hurly r salary Slutin: Select a pay cde f type hurly r salary. Message: The Nn-Taxable Benefit cde is nt set t Emplyer Pays Full Amunt in Life Insurance setup. Ttal benefit cst may be verstated Situatin: User attempted t save a setup recrd r run the update prcess when the Taxable Benefit Cde was set t a cde where Full Amunt was nt specified fr Emplyer Pays ptin in Life Insurance Setup. Slutin: Set the taxable benefit cde t full amunt frm the Life Insurance Setup windw r select a different taxable benefit cde. P a g e 32 34

33 Deactivate Prduct There are three ways t deactivate the Life Insurance Tax Calculatr; disable, inactive r uninstall. Disable T disable Life Insurance Tax Calculatr withut having t exit Micrsft Dynamics GP, pen the Custmizatin Status windw. T pen this windw, select the Micrsft Dynamics GP menu, pint t Tls, select Custmize and then click Custmizatin Status. Select the prduct frm the list and click Disable. The prduct can be enabled by clsing and repening Micrsft Dynamics GP. Inactivate Life Insurance Tax Calculatr can be inactivated by cmpany, pen the Activatin Manager windw and unmark the cmpany checkbx. Uninstall If Life Insurance Tax Calculatr needs t be uninstalled cmplete these steps n the server and the client where Life Insurance Tax Calculatr has been installed. 1. Remve the GTLI6833.DIC file frm the Runtime Directry Default lcatin is C:\Prgram Files\Micrsft Dynamics\GP 2. Make a cpy f the Dynamics.set file 3. Open the Dynamics.set file a. Decrease the tp number by ne: Fr example, if the tp number is 21 change it t 20 b. Remve the fllwing lines frm the Dynamics.set file: 6833 Life Insurance Tax Calculatr :C:Prgram Files/Micrsft Dynamics/GP/GTLI6833.DIC :C:Prgram Files/Micrsft Dynamics/GP/Data/ GTLI6833F.DIC :C:Prgram Files/Micrsft Dynamics/GP/Data/ GTLI6833R.DIC 4. Save the Dynamics.set file 5. Launch Micrsft Dynamics GP and lgin as the system administratr P a g e 33 34

34 Cntact Infrmatin Get quick answers t yur questins Brwse ur cnvenient Knwledge Base fr up-t-date answers t the mst cmmn questins. Fr additinal questins, please cntact yur authrized Value Added Reseller (VAR) fr supprt n this prduct. Or, cntact Integrity Data by ing supprt@integrity-data.cm r calling x0220 r x0221. If yu have registered yur prduct, Technical Custmer Service is available fr any custmers with a current Enhancement Plan. Please have yur Site Name available. Yur first line f supprt shuld always be yur VAR. Rate us and ur prducts Are yu pleased with yur experience with us and ur prducts? Prvide a qute and get a gift card! Visit integrity-data.cm/testimnials/. Suggest new features r imprvements User input int imprving this prduct and cnstructive feedback are appreciated. Please Tm, ur Prduct Manager, at tfranz@integrity-data.cm. As always, technical ideas and user input are highly encuraged. At Integrity Data, we want t hear yur input, s drp us a line! Brwse ur slutins The Integrity Data website is a great place t get additinal infrmatin n prducts and services. The fllwing infrmatin is available n ur website: Integrity Data s HR & Payrll Add-n pages include Dems, Features and Benefits, and ROI Calculatrs Use ur catalg t quickly brwse ur prducts r frward t a clleague Purchase prducts r calculate pricing at ur nline stre Visit ur Services page t learn mre abut ur additinal custmizatin services If yu wuld like t discuss yur needs with a Sales Accunt Executive, please call r sales@integrity-data.cm. P a g e 34 34