EE to pay taxes on LTD premiums
Hi Benefits gurus,
I have a question - our Benefits department requests that we configure the system to take taxes on the long term disability premiums the company pays on the employee's behalf.
Benefits requests Payroll to set up a general deduction but I am not sure that is the correct way to accomplish this request.
Long Term Disability Premium Calculation
For Gross Up Long Term Disability
(LTD), Premium is calculated the same way as for Traditional employer paid LTD.
The formula for calculating monthly premium is as follows:
- If
Employee salary is less than or equal to $300,000, then (Employee Annual Salary)/12