Creating Reportable Income Time Records

When a company pays all or a portion of the premiums for an employee on Group Term Life Insurance, the employee must pay taxes on the value of the amount of coverage over $50,000. The coverage over $50,000 is referred to as excess coverage. Life Insurance Reportable Income (BN150) calculates, for each employee, the taxable amount associated with excess employee and dependent life insurance coverage. The taxable amount is called imputed income.

Perform the update every pay cycle, monthly, or once at the end of the year. Create a time record to add the imputed income to the employee's taxable wages.

The application can also determine the value of excess employee coverage. Calculating the cost of excess life insurance

A life benefit plan must have a Yes in the Reportable Life field on the Misc tab on Benefit Plan (BN15.1) to be included in the Life Insurance Reportable Income calculation. Defining a primary benefit plan

You must define parameters to calculate an employee's tax liability for excess employee and dependent life insurance. The Internal Revenue Service (IRS) determines the monthly cost table. Defining Excess Life Insurance Rates

To create reportable income time records

Access Life Insurance Reportable Income (BN150).
In the Parameters section use the following guidelines to enter field values:

As of Date

Type the date of the benefits you want to use for the report. This is a required field. The Benefits Administration application performs calculations based on the benefits in effect on the date specified.

Note: To be included, the benefit start date must be less than or equal to this date and the stop date must be equal to or greater than the date.

Report Option

Select the kind of benefits you want in the report. This is a required field.

Use Pretax Amount

If employees pay for life insurance on a pre-tax basis, select whether the application should use the calculated value of excess life insurance and disregard the employee's pretax contributions. This is a required field.

If you select Yes, the system uses the greater amount of the calculated value of excess life insurance or the employee's pretax contribution as the basis for the W2 reportable income. If you select No, the system uses the calculated value of excess life insurance and disregards the employee's pretax contributions.

Frequency

Select the period for which you want to run the report. This is a required field and impacts the calculation.

Note: Imputed income is calculated as an annual amount then divided by a number corresponding to the frequency selected.

Time Records

Select whether you want the report to create time records.

The Infor Payroll application uses the time records to update an employees taxable wages for the value of excess life insurance.

Time Record Date

To create time records, type the date for the time record.

Update

Select the function you want to perform. This is a required field. It is recommended that you select Report Only to review the report before selecting Update.
Select the Add form function.
Submit the report.