Before You Begin: Dayforce only shows this field for Life and Disability plans based in the United States.
If a group term life plan provides coverage more than $50,000 and should, therefore, be subject to imputed income, you must select the Apply Imputed Income checkbox during setup. Dayforce uses the Internal Revenue Service (IRS) rate table to calculate the per-pay-period taxable amount, based on the employee's age and coverage amount.
The imputed income amount is mapped to an earnings code to be withheld from each employee's earnings statement, every pay period. If the employee is enrolled in multiple options that are subject to imputed income, the total coverage amount is used in the calculation, and all options that are subject to imputed income must be mapped to the same payroll earnings code. See Life and Disability Plan Payroll Mappings.
The payroll election records generated from Benefits cover the pay dates of each month in which the employee has coverage. So, for a benefit that is effective for the entire year, the Effective From date of the payroll election will be the effective start of the pay period of the first pay date in the plan year. The Effective Until date of the payroll election is the effective end of the pay period of the last pay date in the plan year.
Important: Imputed income is calculated based on 27 or 53 pay periods in applicable years regardless of whether mapped deduction definitions are configured to exclude those pay dates in payroll calculations.
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