Actuals distribution imputed income

We have new earning code for imputed income on employees getting tuition assistance money over $5250 in a calendar year.

The earning code setup requires do not add to gross- meaning the checkbox on the earn code setup is blank. Add to gross = No

In fact the only box checked in the taxes tab of earnings code setup Earnings section is to Maintain Balances

This amount only is to add to the federal taxable gross.

here is a screen capture of the taxes tab setup for this earn code

problem=

in running actuals distribution, we discovered that the employer paid taxes all are distributed to the employee's Home account.