Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-06-23
Example: Imputed Income from Group Term Life Insurance (USA)

Example: Imputed Income from Group Term Life Insurance (USA)

Define a deduction to calculate employee post-tax Group Term Life (GTL) contributions and an earning to calculate imputed income from employer contributions.
Create a GTL insurance plan based on rates defined in the rate tables of the benefit plan.
  1. Define a deduction for the employee post-tax GTL contribution.
  2. Define an earning to calculate the imputed income the employee receives from the employer taxable contribution to GTL.
Workday calculates the deduction if:
  • You don't select the
    Employee Cost Is Pre-Tax
     option on the
    Create Benefit Plan
     task.
  • The covered person is an employee.
  • The employer (taxable) benefits cost is greater than zero.
  • The insurance coverage amount (reduced by employee post-tax cost) is greater than 50,000 USD.
Workday:
  • Retrieves the age of the covered person.
  • Retrieves the coverage amount.
  • Calculates the employer contribution subject to taxes using IRS Premium Table rates.