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Group Term Life Insurance premium as income without offsetting expense

Lee Member ✭✭
How do I record Group Term Life Insurance Premium as income from my paycheck without affecting the actual cash deposit?  This is an employer paid benefit and there is no offsetting deduction.

Best Answer


  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Are you seeing this information on a paycheck, perhaps some sort of "memo" item?

    Premiums paid by an employer on group term life insurance coverage up to $50,000 are not considered income by the IRS so you could simply ignore that information.  It's a true "freebie".  If you want to account for it in some fashion then you have to make an accounting entry with a $0 income/expense effect.  Since Quicken doesn't allow you to make any entry ONLY in Categories, you need to make an entry in an Account first recognizing the income and then make an offsetting entry in an Account recognizing the expense.  That leaves the balance of the Account unaffected and records the income and expense.
    I do that occasionally with "cash out of pocket" purchases.  Normally if I take cash out of an AMT I charge that to a "Miscellaneous" Category.  But if I want to capture a particular cash outlay for accounting purposes I make a pair of entries in my Checking Account, (though any Account will do):

    Debit (increase) [Some Category]              $XXX
    Credit (decrease) Checking Account          $XXX

    Debit (increase) Checking Account            $XXX
    Credit (decrease) Miscellaneous Category  $XXX

    and mark both entries as "cleared".

    The result is that the checking Account is unaffected, the Miscellaneous Category is reduced and some other Category is increased by the same amount.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    In my wife's paycheck, I show it in both the Income area and in the "After Tax Deduction" area.  So, the impact on the pay received is $0
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • ds369
    ds369 Member
    I've done the following:

    "Add Earning" then "Other earning." I named it "Imputed Income" and assigned it the same category as my Salary item.

    "Add Pre-Tax Deduction" then "Other Pre-Tax deduction." I named it "Offset for imputed income" and gave it no category. Set it to the same amount as the earning.
  • ds369
    ds369 Member
    Not 2 seconds after hitting "post" I realized that I typo'd pre-tax. It's POST-TAX.
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