FDX-"Excess life" on paychecks?
#1
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Joined APC: Mar 2007
Posts: 148
FDX-"Excess life" on paychecks?
Hi guys,
Another newbie question for the FDX guys. What is the excess life on our paychecks?
Usually, it is always extra $$$ added, but this month, I am short the amount of excess life? Is this right or an error in the payroll dept? What is the dealio?
Thanks...
Another newbie question for the FDX guys. What is the excess life on our paychecks?
Usually, it is always extra $$$ added, but this month, I am short the amount of excess life? Is this right or an error in the payroll dept? What is the dealio?
Thanks...
#2
Premium for life insurance policy if above $50,000 benefit amount (Maximum allowed by IRS for a tax-free life insurance benefit);
The excess premium is listed on your pay stub as Excess Life
The excess premium amount is considered a “taxable fringe benefit” by the IRS, and it must be taxed as “income”;
From another company:
Under current Internal Revenue Services (IRS) regulations, the value of your Basic and Supplemental Term Life Insurance in excess of $50,000 will be taxable to you. This taxable amount, called Imputed Income, is determined under IRS guidelines and based on your age at the end of the calendar year. The Imputed Income is calculated during the payroll processing process and will show in the earnings section of your payslip as “GTL Imp Inc.” If you have Supplemental Life Insurance, your GTL amount is reduced by your after-tax contributions. While the GTL amount is in the earnings section of your payslip, it is not being paid to you; it is being added to your taxable income so it will be reflected on your Form W-2. Federal, Social Security, Medicare, and state taxes are withheld from your paycheck for this additional income. You should also note that it is not part of your base salary, nor is it part of your salary for benefits purposes (i.e., there are no Retirement Plan contributions for this GTL amount). There is no imputed income on Dependent Life Insurance.
Another decent article:
http://findarticles.com/p/articles/m...54/ai_59495186
The excess premium is listed on your pay stub as Excess Life
The excess premium amount is considered a “taxable fringe benefit” by the IRS, and it must be taxed as “income”;
From another company:
Under current Internal Revenue Services (IRS) regulations, the value of your Basic and Supplemental Term Life Insurance in excess of $50,000 will be taxable to you. This taxable amount, called Imputed Income, is determined under IRS guidelines and based on your age at the end of the calendar year. The Imputed Income is calculated during the payroll processing process and will show in the earnings section of your payslip as “GTL Imp Inc.” If you have Supplemental Life Insurance, your GTL amount is reduced by your after-tax contributions. While the GTL amount is in the earnings section of your payslip, it is not being paid to you; it is being added to your taxable income so it will be reflected on your Form W-2. Federal, Social Security, Medicare, and state taxes are withheld from your paycheck for this additional income. You should also note that it is not part of your base salary, nor is it part of your salary for benefits purposes (i.e., there are no Retirement Plan contributions for this GTL amount). There is no imputed income on Dependent Life Insurance.
Another decent article:
http://findarticles.com/p/articles/m...54/ai_59495186
#3
Yeah but didn't he say it was a negative?
Just so we're talking apples to apples here: Left Coast on your pay stub did it say Excess Life and then have a negative number? As in it reduced your taxable income?
Just so we're talking apples to apples here: Left Coast on your pay stub did it say Excess Life and then have a negative number? As in it reduced your taxable income?
#4
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Joined APC: Mar 2007
Posts: 148
Well, it doesn't have a negative number, but, I subtracted my taxes + deductions from my gross and I am short the exactly the amount of the "excess life".
I check with a friend and his was the same thing. Can you guys look at yours on the green screen and see if you are short too?
edit...I just checked last years paystubs and found that on the 1st paycheck every month, I was having $67.50 taken out of my paycheck for excess life. I guess I just never noticed it was being deducted since it was under "other earnings"?
I check with a friend and his was the same thing. Can you guys look at yours on the green screen and see if you are short too?
edit...I just checked last years paystubs and found that on the 1st paycheck every month, I was having $67.50 taken out of my paycheck for excess life. I guess I just never noticed it was being deducted since it was under "other earnings"?
Last edited by Left Coast MD11; 02-26-2008 at 09:23 PM.
#5
Anybody else notice this?
OK, here's one for you finance gurus. Last tax year, there was a large difference between the FX "IEarnings" green screen gross income as an F/O...and the eventual W-2 "here's what you made" gross income/taxable amount. Almost 20k difference.
Now..that gap has narrowed. 4k difference between the two...big tax hit as a result. Is this a situation where the company is passing the tax obligation--ie. the taxable deviation banks? Just the result of a higher tax bracket? Or something else I'm missing?
Anybody else noticing this? Or should I go sit in the corner and color?
Now..that gap has narrowed. 4k difference between the two...big tax hit as a result. Is this a situation where the company is passing the tax obligation--ie. the taxable deviation banks? Just the result of a higher tax bracket? Or something else I'm missing?
Anybody else noticing this? Or should I go sit in the corner and color?
#7
#8
#9
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Joined APC: Mar 2007
Posts: 148
I found the table and it works out. I can't believe that I just now noticed this money was being taken out every month (even though it is listed as earnings?)
1. Take the $800,000 that Fed Ex gives us.
2. Minus the first $50,000 that is tax free = $750,000
3. Divide $750,000 by 1000 = 750
4. Times the age/precent table (my case 35-39) 750 x .09 = $67.50
TABLE I. -- UNIFORM PREMIUMS FOR $1,000 OF
GROUP-TERM LIFE INSURANCE PROTECTION
_________________
Under 25 = $0.05
25 to 29 = .06
30 to 34 = .08
35 to 39 = .09
40 to 44 = .10
45 to 49 = .15
50 to 54 = .23
55 to 59 = .43
60 to 64 = .66
65 to 69 = 1.27
70 and above = 2.06
1. Take the $800,000 that Fed Ex gives us.
2. Minus the first $50,000 that is tax free = $750,000
3. Divide $750,000 by 1000 = 750
4. Times the age/precent table (my case 35-39) 750 x .09 = $67.50
TABLE I. -- UNIFORM PREMIUMS FOR $1,000 OF
GROUP-TERM LIFE INSURANCE PROTECTION
_________________
Under 25 = $0.05
25 to 29 = .06
30 to 34 = .08
35 to 39 = .09
40 to 44 = .10
45 to 49 = .15
50 to 54 = .23
55 to 59 = .43
60 to 64 = .66
65 to 69 = 1.27
70 and above = 2.06
#10
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Joined APC: Aug 2006
Position: 1559
Posts: 1,533
Well, it doesn't have a negative number, but, I subtracted my taxes + deductions from my gross and I am short the exactly the amount of the "excess life".
I check with a friend and his was the same thing. Can you guys look at yours on the green screen and see if you are short too?
I check with a friend and his was the same thing. Can you guys look at yours on the green screen and see if you are short too?
The money isn't being deducted from your paycheck because it isn't being paid in the first place.
Look at your paystub, not the green screen, and see what the Gross Pay line says. That number should equal all of the line items under the "this period" column excluding ExcessLife #.
So, if Exceesslife # is $75 and your BLG is $5000, then the Gross Pay line should say $5000.
On your W-2, Excess Life is reported in Box 12 with a C code which is for Group Term Life Insurance in Excess of $50,000
Last edited by MX727; 02-26-2008 at 09:42 PM.
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