Imputed revenue for group-term life (GTL) is a non-cash earning that boosts an employee"s taxable salaries to comply v the IRS-mandated schedule because that group-term life insurance v a benefit amount in overfill of $50,000.00.

Using standard system setup, imputed income for GTL have the right to be identified to be immediately calculated and added to employee"s earnings.

This topic addresses set up and also processing because that imputed income for group-term life insurance allowance benefits. This is uneven other species of imputed income, such as imputed revenue for wellness plans spanning non-IRS dependents, i m sorry are regularly setup and also processed with a custom benefit stored procedure.

Note: Imputed revenue other 보다 imputed earnings for group-term life deserve to be gotten in manually v a different earning or can be setup and also processed v a custom benefit stored procedure built and also implemented by a system implementation specialist.

Read on for information about imputed earnings for group-term life insurance benefits.

Business Scenario

An employee earns $40,000.00 annually and has elected the team life insurance allowance benefit readily available by the company. The advantage elected by the employee gives a advantage Amount of $80,000.00 (2 time the employee"s salary of $40,000.00).

The benefit code is designated to calculation imputed income and also has the imputed income earning because that GTL selected.

You are watching: What is gtl on a paycheck

The Employee benefit Detail for the GTL benefit has the benefit Amount of 80000.  

When payroll is initialized because that Gross-to-Net, imputed earnings processing calculates an imputed income amount based on the Life Insurance worth in overfill of $50,000.00 and also the commonwealth GTL table that percentages, and the calculated imputed revenue amount is included as an employee earning for imputed earnings according to the handling logic because that imputed income. For more information, describe the "Processing Logic" for imputed income.

In this employee"s case, Imputed revenue is calculate on $30,000.00 (the excess of the IRS mandated $50,000.00).

See more: Is A Vacuum A Good Insulator ? How Does Vacuum Insulation Work

For setup information, refer to "Imputed earnings Setup because that GTL Plans."

Processing Logic

Imputed-income processing occurs immediately when payroll is initiated and also processed come gross-to-net. Uneven payroll gross-to-net, processing hand-operated checks or gross-to-net from salary entry doesn"t create imputed revenue records.

Per payroll, imputed-income processing has the complying with pre-conditions:

The payroll has benefits processing. (Process services is marked on the Payroll Calendar.) benefit plans for imputed earnings (plans through the Imputed earnings checkbox selected on the benefit Code) have actually an imputed revenue earning selected. The employee has a benefit setup for imputed revenue with a benefit amount in overfill of $50,000.00. The employee has earnings because that the payroll that aren"t locked by a hand-operated check.

After the every payroll problems are met, imputed revenue calculates per employee:

an employee"s benefit quantities for imputed revenue plans are added together and then diminished by 50,000.00. The remaining amount processes via the commonwealth GTL table the percentages. The calculation amount because that imputed earnings is developed as a row of income for the imputed income Code for a check code, frequently REG. In instances where the employee has earnings for two inspect codes, such as REG1 and REG2, imputed income is included to REG2, after the other problems have to be met.

Clearing gross-to-net processing for a pay operation leaves any created imputed earnings records in detailed pay entry. When auto-created imputed earnings records are deleted from pay entry, re-processing gross-to-net for the payroll re-creates imputed income according to the same conditions outlined above.

Note: To avoid GTL and also other benefits from processing for an mediate or various other special payroll run, change the settings on the Payroll Calendar to clean the "Process Benefits" checkbox.

Imputed earnings Setup for GTL Plans

define one income Code for GTL imputed earnings on the revenue codes validation table. define the earning amount and percentage as 0.00. choose the "other indicators" for print on check (optional), Reportable Comp, and Non-Cash Earning. Clear the Wages worked checkbox. specify a procedure sequence. In the W2 Box, choose 12C. Choose all checkboxes come "update taxable wages" because that FIT, FICA, FHI, and SIT. Select the state and local checkboxes together applicable. define the extinguish Codes for the benefit setup on the deduction codes validation table. top top the benefits Codes Table, specify which plans room for GTL imputed revenue by selecting the "Imputed Income" checkbox and also the earnings code for imputed income. Also, select any employee and also employer deduction together applicable. Define advantage costing and also coverages on the benefit Cost codes Table. entrust the benefit plan and also coverage to each employee with suitable benefit amounts. Benefits deserve to be assigned ~ above the Employee Benefits information or deserve to be elected as part of one online benefit enrollment.

Group term Life benefit Code Setup because that GTL Imputed Income

On the advantage code for group-term life, select the Imputed revenue checkbox and the Earning password for imputed income.