English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

I got an 11 cent eegtl tax in one paycheck a month ago... ?
eegtl = employee group term life (insurance)

2007-07-20 16:54:43 · 1 answers · asked by Nick 5 in Business & Finance Taxes United States

1 answers

I believe it is the payroll people made an error in the prior pay period. That result in 11 cents refund back to you.

The Group-Term Life Insurance Coverage is part of section 125 cafeteria plan employee deduction (cafeteria plan- All you can eat! Health insurance, childcare etc.)

When you have a Sec 125 cafeteria plan, the insurance is deducted from your gross wage, then taxes. For example, let's say your gross pay is $1,000 a week (boy, wouldn't we all want that job?). You've agreed to have $100/week deducted through a Sec 125 cafeteria plan. Now, your taxable gross pay is $900. Based on that adjusted $900 gross, you then will calculate all payroll taxes. Social security and Medicare deduction would be $68.85 ($900 x 7.65%), your federal and state taxes will be based on that same $900 gross, and so on. When you receive your W-2 at the end of the year, your taxable gross will be $46,800 ($900 x 52 weeks), not $52,000 ($1,000 x 52 weeks). It actually works out nicely, taxwise. The only potential downside I see is that it will reduce your social security contributions (that's assuming if any of us ever sees a dime we contributed, anyway). [Me lazy about examples especially for 11 cents only]

http://answers.yahoo.com/question/index;_ylt=AsIfzsT7yT5qttHhKjaOugsjzKIX?qid=20060721102251AA83L2p

Group-Term Life Insurance Coverage

You can generally exclude the cost of up to $50,000 of group-term life insurance from the wages of an insured employee. You can exclude the same amount from the employee's wages when figuring social security and Medicare taxes. In addition, you do not have to withhold federal income tax or pay FUTA tax on any group-term life insurance you provide to an employee.

*************


This exclusion applies to life insurance coverage that meets all the following conditions.

*

It provides a general death benefit that is not included in income.
*

You provide it to a group of employees. See The 10-employee rule below.
*

It provides an amount of insurance to each employee based on a formula that prevents individual selection. This formula must use factors such as the employee's age, years of service, pay, or position.
*

You provide it under a policy you directly or indirectly carry. Even if you do not pay any of the policy's cost, you are considered to carry it if you arrange for payment of its cost by your employees and charge at least one employee less than, and at least one other employee more than, the cost of his or her insurance. Determine the cost of the insurance, for this purpose, as explained under Coverage over the limit, later.

Group-term life insurance does not include the following insurance.

*

Insurance that does not provide general death benefits, such as travel insurance or a policy providing only accidental death benefits.
*

Life insurance on the life of your employee's spouse or dependent. However, you may be able to exclude the cost of this insurance from the employee's wages as a de minimis benefit. See De Minimis (Minimal) Benefits, earlier.
*

Insurance provided under a policy that provides a permanent benefit (an economic value that extends beyond 1 policy year, such as paid-up or cash surrender value), unless certain requirements are met. See Regulations section 1.79-1 for details.

Employee. For this exclusion, treat the following individuals as employees.

1.

A current common-law employee.
2.

A full-time life insurance agent who is a current statutory employee.
3.

An individual who was formerly your employee under (1) or (2), above.
4.

A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction and control.

2007-07-22 17:08:48 · answer #1 · answered by naekuo 7 · 0 0

This sort has been occurring for some years. Now that the financial kit is interior the worst recession with the help of making use of fact the purely precise melancholy, each physique is ultimately noticing that the middle sort has been disappearing. government pay is something that would not have any controls interior the U.S. The Board of directors comprises a style on the reimbursement classes, and administration chooses the Board of directors. on an analogous time as shareholders theoretically vote on those difficulty, maximum do no longer pay interest, and regardless of if or no longer they did, many shares are held by making use of making use of mutual funds that vote as a block. the finished thought of employer governance could be recognized at, the two from the ideas-set of reimbursement and at why the CEO's have been doing so badly for our financial kit.

2016-11-10 00:50:33 · answer #2 · answered by ? 4 · 0 0

fedest.com, questions and answers