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Administrator Guide
Last Updated: 2023-06-23
Example: Create a Deduction for Employer Taxable Contribution to Health Care Benefits (USA)

Example: Create a Deduction for Employer Taxable Contribution to Health Care Benefits (USA)

This example illustrates 1 way to create a deduction for an employer's taxable contribution to a worker's health care benefit plan.
A portion of Paul's employer contributions to his health care plan is taxable. You want to create a deduction for employer contributions.
  • You have a pay components group named
    Benefits During Leave
     for non-active workers.
  • Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     domain in the Core Payroll functional area.
  1. Access the
    Create Deduction
     task.
  2. Enter these settings:
    Option Description
    Name
    Health Care - ER (Taxable)
    Code
    HC-TAXABLE-ER
  3. Enter these settings on the
    Effective Dated
     tab:
    Option Description
    Effective Date
    Current date
    Run Category Eligibility
    Regular
    Worker Eligibility
    Benefits Employer Cost or Pay Input Exists
    Pay Component: Not Previously Paid in Period
    Processing Primary Job
    Calculation
    Benefits: Employer Cost
    Recalculate during Retro
    Select the check box.
  4. Enter these settings on the
    Non-Effective Dated
     tab:
    Option Description
    Groups
    Benefits During Leave
    Employer Paid Benefits [GBR CAN USA]
    Benefit Plans
    Select the health care benefit plan.
Create an earning for imputed income from this employer contribution.