Hi Justyna Roj ,

Thanks for reaching out. If you're looking to allocate life insurance and pension costs that are paid by the employer in Sage 50, you would generally need to set up these items as either a Taxable Benefit or a User-Defined Expense, depending on how they should be treated for tax purposes.

Here are the steps you'd follow:

1. Create a Group Deduction: If there's an employee contribution to the life insurance or pension plan, you'll set this up under Payroll Settings. This will be the employee's deduction.

2. Create a Taxable Benefit: If the employer's contribution is considered a taxable benefit to the employee, set this up in the Payroll Income settings. This will appear on the employee's pay and tax forms as a benefit.

3. Create the Employer's Expense: For the employer-paid portion, define an expense account in Payroll Settings to record the employer's payment towards these benefits.

Remember to link these deductions and benefits to the appropriate accounts in your Chart of Accounts, and ensure that the Employer's portion payable account is not the same as the one chosen for the Employee's deduction.

Each step involves specific settings regarding tax treatment and linking to accounts, so please refer to the detailed guide provided in the article "How do I create group benefits, such as a Group RRSP, MSP?" from the Sage Knowledgebase.

If you need the specific nominal codes for life insurance and pension contributions, these could vary depending on your organization's accounting setup. Typically, you could set up new accounts for these items in your Chart of Accounts if they don't already exist.

If this helps please mark it as verified :)

Warm Regards,
Erzsi

Hi Justyna Roj ,

Thanks for reaching out. If you're looking to allocate life insurance and pension costs that are paid by the employer in Sage 50, you would generally need to set up these items as either a Taxable Benefit or a User-Defined Expense, depending on how they should be treated for tax purposes.

Here are the steps you'd follow:

1. Create a Group Deduction: If there's an employee contribution to the life insurance or pension plan, you'll set this up under Payroll Settings. This will be the employee's deduction.

2. Create a Taxable Benefit: If the employer's contribution is considered a taxable benefit to the employee, set this up in the Payroll Income settings. This will appear on the employee's pay and tax forms as a benefit.

3. Create the Employer's Expense: For the employer-paid portion, define an expense account in Payroll Settings to record the employer's payment towards these benefits.

Remember to link these deductions and benefits to the appropriate accounts in your Chart of Accounts, and ensure that the Employer's portion payable account is not the same as the one chosen for the Employee's deduction.

Each step involves specific settings regarding tax treatment and linking to accounts, so please refer to the detailed guide provided in the article "How do I create group benefits, such as a Group RRSP, MSP?" from the Sage Knowledgebase.

If you need the specific nominal codes for life insurance and pension contributions, these could vary depending on your organization's accounting setup. Typically, you could set up new accounts for these items in your Chart of Accounts if they don't already exist.

If this helps please mark it as verified :)

Warm Regards,
Erzsi