HR/Payroll Bulletin - Spring 2002

Topic:		Imputed Income for group term life insurance
Effective Date:		May 2002
What's New?		Group term life insurance premiums paid by Brandeis University for life insurance coverage in excess of $50,000 are taxable. The formula used to calculate the amount of taxable benefit, called imputed income, is based on the individual?s age and the amount of insurance coverage in excess of $50,000. Until just recently, this tax was deducted from the final paycheck of the calendar year. Beginning last February, the imputed income tax has been taken out of the last paycheck of each month. Beginning May 1, when we go live with PeopleSoft, this deduction will be taken from each paycheck.
Why?		PeopleSoft automatically calculates this deduction for each payroll.
Who does this affect?		All employees who have group term life insurance coverage in excess of $50,000 annually. If you are not sure if this applies to you, see For More Information, below.
Benefits		This tax deduction will be spread out over the entire year, thereby eliminating the current fluctuations in paychecks.
For more information		If you have any questions, please contact: the Benefits section of the Office of Human Resources and Employee Relations at extension 6-4468, or email Anne Marie McCarney at mccarney@Brandeis.edu

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