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Administrator Guide
Last Updated: 2023-06-23
Example: Create an Earning for Imputed Income from Health Care Benefits (USA)

Example: Create an Earning for Imputed Income from Health Care Benefits (USA)

This example illustrates 1 way to create an earning for imputed income from a health care benefit plan.
Paul has to pay tax on the imputed income from the taxable benefit his employer pays for his health care benefits. You create an earning for the imputed income from this benefit.
  • 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 Earning
     task.
  2. Enter these settings:
    Option Description
    Name
    Health Care - ER (Taxable)
    Code
    HC-ER-TAX
  3. Enter these settings on the
    Effective Dated
     tab:
    Option Description
    Effective Date
    Current date
    Run Category Eligibility
    Regular
    Worker Eligibility
    Base Pay > 0
    Benefits: Employer Cost (taxable) Exists and < > 0
    Pay Component: Not Previously Paid in Period
    Processing Primary Job
    Calculation
    Benefits: Employer Cost (Taxable)
  4. Enter these settings on the
    Non-Effective Dated
     tab:
    Option Description
    Groups
    Benefits During Leave
    Federal Taxable (Do Not Withhold Taxes) [USA]
    FICA Taxable [USA]
    Local Withholding Taxable (Do Not Withhold Taxes) [USA]
    Local Withholding Taxable Employer (Do Not Withhold Taxes) [USA]
    Non Cash Taxable Benefits
    State Withholding Taxable (Do Not Withhold Taxes) [USA]
    Benefit Plans
    Select the health care benefit plan.