Accounting, Payroll & Pension Issues/Group Term Life

Advertisement

Expert: - 12/9/2009


Question
Some of our employees earnings for the year is lower than their "annual base salary".  Do we calculate the GTL on the actual earned wages or on the "annual base salary"?

Ex: Tom annual base salary is stated at 80k. Due to cutbacks and furloughs, Tom take home earnings were 65k.  

Which would be the preferred salary/wage to use to compute GTL?

Answer
I would use the Annual Base Salary because that is probably what you told the employee that it would be. Also if you change the amount you have to let the insurance company know it has changed for each person it changed for and then let them know again next year if it is different. If you use the Annual Base Salary it is the same until there is a pay change.

Makes it a whole lot easier for Accounting also, and their hours cost money.

Shirley

Accounting, Payroll & Pension Issues

All Answers

Answers by Expert:

Ask Experts

Volunteer

Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

©2012 About.com, a part of The New York Times Company. All rights reserved.