Insurance shared with employer

[Derek Brader]

Hi,

I think the method David H. describes offers all the flexibility you
need.  You can then track it however you want after the fact by
customizing reports.

Some insurance covered by your employer may be included in your wages
for US Federal Income Tax purposes (i.e. form W-2 box 1), some may be
included for Social Security tax purposes (i.e. form W-2 box 3), and
some may be included for state income tax purposes (i.e. form W-2 box
16).  If you want to reconcile your W-2 form from your employer against
your records, you may need to account for this income separately from
your salary/wages.  That's what I have to do: my employer pays for term
life insurance, and that income is taxable for Fed Inc Tax, but not
taxable for Soc Sec tax or state inc tax (PA).  If you're out of the US
this is fairly irrelevant, but either way I think you'll have enough
flexibility if you do it like this.

~derek



on 1/19/06 7:21 PM, David Hampton wrote the following:
>
> I use accounts named Income:W2 and Income:Other.  I would record this as
> $1000 from Income:Salary, $50 from Income:Other, $950 to Assets:Checking
> and $100 to Expenses:Insurance.  YMMV.
>
> David
>
>
> On Thu, 2006-01-19 at 16:32 -0500, Marc Tardif wrote:
>> My employer shares payment of insurance with employees half and half.
>> So, if insurance costs $100, my employer pays $50 and I pay $50. The
>> problem is that I'm not sure how to account for these amounts.
>>
>> For example, lets say I have a salary of $1000. So, my employer adds $50
>> for its portion of the insurance which makes my gross salary look like
>> $1050. Then, I am deduced the full amount of the insurance $100 which
>> brings me to $950.
>>
>> How do I account for my salary and insurance in GnuCash? Should I report
>> $1050 as Income:Salary and $100 as Expense:Insurance:Benefits? Shouldn't
>> I report $1000 as Income:Salary, $100 as Expense:Insurance:Benefits and
>> something else for the $50 insurance paid by my employer?
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