Issue calculating life insurance imputed income
SummaryIssue reducing life insurance imputed income by employee contribution
I have a reduce life insurance imputed income by the employee's after-tax life insurance contribution. I have configured the imputed income shell plan and everything seems to be working based on the age bands and IRS tables. The issue is that the payroll department insists that the imputed income amount should be reduced by the employee life insurance deduction amount. e.g.
Life insurance coverage amount = 976,394.00
Employee is 65 years old so factor = 1.27 per thousand dollars of coverage
Employee Life insurance deduction = 87.99 bi-weekly
I calculated imputed income as ((976,394 - 50,000)/1000) * 1.27 = 1,176.52 per month = 543.01 bi-weekly