We have an existing wage type for active employees for the imputed income component of group term life insurance. We are processing payroll under 4.6c system. We have several hundred retirees that have just received life insurance coverage. I was looking at model wage types /BU1, /NG3 and /NG5 for a starting point. I was considering trying to write a rule to move the value from existing WT to a new wage type for retirees based on their status. Then I should be able to map the wage types to W-2 box 12. Has anyone else had to deal with GTL for retirees? Does this approach seem possible?
Another option might be to follow a simpler approach and do all the calculations in a spreadsheet and process the total amount as a 221 adjustment at the end of the year.
You have to some net payment for FICA but yes, this will work if you report uncollected FICA in one of the other 12 boxes. It is also not exempt from withholding. The difference between GTL and most other imputed values is that you don't have to withhold.