How Imputed is Calculated

Modified on Fri, Jan 5 at 8:48 AM

The method that is used to calculated the Imputed Deduction is chosen from the Imputed Waiver drop down on the Payroll → Summary tab of a staff member.

Please click here for Fact Sheet #22 from the Division of Pensions

Group Term Life Insurance for Employees 60 and older (PERS & TPAF)

Normal Imputed Calculation - (Employee participates in both Contributory and Non Contributory Life Ins.)

An error will occur if the staff member does not have a Contributory Insurance deduction.

#.	Work Performed	Sample (12 Month employee / TPAF age 58)
1.	PP = Term * 2 (Term is either 12 or 10 month)	12 * 2 = 24
2.	A = Pension Gross x PP	A = 6,850.83 * 24 = 164,419.92
3.	B = A * (3 If PERS, 3.5 is TPAF)	B = 164,419.92 * 3.5 = 575,469.72
4.	C = B - 50,000	C = 525,469.72 - 50,000 = 525,469.72
5.	T = C / 1000 (rounding to .1)	T = 525,469.72 / 1000 = 525.5
6.	AL = Look up value from Age Look up table (Birthday as of 12/31 of payroll year)	AL = 5.16 (From Age look up table below)
7.	X = T * AL	X = 525.5 * 5.16 = 2,711.58
8.	Y = Contributory insurance deduction * PP	Y = 27.40 * 24 = 657.60 (27.40 is the contributory insurance deduction taken out this payroll)
9.	ANNUAL_VALUE = X - Y	ANNUAL_VALUE = 2,711.58 - 657.60 = 2,053.98
10.	Imputed Amount = ANNUAL_VALUE / PP	Imputed Amount = 2,053.98 / 24 = 85.582 (85.58)

Waiver Granted Calculation (Waiver of Non Contributory Insurance over 50,000)

Both the CI and Imputed deduction are on as normal but the calculation is different (they can reverse this by applying to Pension after one year)

An error will occur if the staff member does not have a Contributory Insurance deduction.

#.	Work Performed	Sample (12 Month employee / TPAF age 58)
1.	NORMAL_ANNUAL = ANNUAL_VALUE of the Normal Imputed Calculation	NORMAL_ANNUAL = 2051.40
2.	PP = Term * 2 (Term is either 12 or 10 month)	12 * 2 = 24
3.	A = Pension Gross x PP	A = 6,850.83 * 24 = 164,419.92
4.	B = A * 1.5	B = 164,419.92 * 1.5 = 246,629.88
5.	C = B - 50,000	C = 246,629.88 - 50,000 = 196,629.88
6.	T = C / 1000 (rounding to .1)	T = 196,629.88 / 1000 = 196.6
7.	AL = Look up value from Age Look up table (Birthday as of 12/31 of payroll year)	AL = 5.16 (From Age look up table below)
8.	X = T * AL	X = 196 .6 * 5.16 = 1014.46
9.	Z = NORMAL_ANNUAL - X	Z = 2,053.98 - 1,014.46 = 1,039.52
10.	Imputed Amount = Z / PP	Imputed Amount = 1,039.52 / 24 = 43.313 (43.31)

Withdrew Calculation - (Employee withdraws from the Contributory part of CI)

The CI deduction is turned OFF The Imputed deduction stays on as the employee is

responsible for the tax on the value of the value of the benefit. (This option is irrevocable

and can not be reinstated once certified by Pension)

#.	Work Performed	Sample (12 Month employee / TPAF age 58)
1.	PP = Term * 2 (Term is either 12 or 10 month)	12 * 2 = 24
2.	A = Pension Gross x PP	A = 6,850.83 * 24 = 164,419.92
3.	B = A * 1.5	B = 164,419.92 * 1.5 = 246,629.88
4.	C = B - 50,000	C = 246,629.88 - 50,000 = 196,629.88
5.	T = C / 1000 (rounding to .1)	T = 196,629.88 / 1000 = 196.6
6.	AL = Look up value from Age Look up table (Birthday as of 12/31 of payroll year)	AL = 5.16 (From Age look up table below)
7.	X = T * AL	X = 196.6 * 5.16 = 1,014.46
8.	Imputed Amount = X / PP	Imputed Amount = 1,014.46 / 24 = 42.269 (42.27)

Board paid Premium Calculation: (For employees 65 and over, the deduction is paid by the Board)

The CI deduction can be turned off) The imputed stays, as the employee is

responsible for the tax on the value of the value of the benefit.

#.	Work Performed	Sample (12 Month employee / TPAF age 58)
1.	PP = Term * 2 (Term is either 12 or 10 month)	12 * 2 = 24
2.	A = Pension Gross x PP	A = 6,850.83 * 24 = 164,419.92
3.	B = A * (3 If PERS, 3.5 is TPAF)	B = 164,419.92 * 3.5 = 575,469.72
4.	C = B - 50,000	C = 575,469.72 - 50,000 = 525,469.72
5.	T = C / 1000 (rounding to .1)	T = 525,469.72 / 1000 = 525.5
6.	AL = Look up value from Age Look up table (Birthday as of 12/31 of payroll year)	AL = 5.16 (From Age look up table below)
7.	X = T * AL	X = 525.5 * 5.16 = 2,709.00
8.	Imputed Amount = X / PP	Imputed Amount = 2,711.58 / 24 = 112.982 (112.98)

Age look up table (Birthday as of 12/31/Payroll Year)

From	Through	Value
	24	.60
25	29	.72
30	34	.96
35	39	1.08
40	44	1.20
45	49	1.80
50	54	2.76
55	59	5.16
60	64	7.92
65	69	15.24
70	-----	24.72