Calculations

Question 1

Chapter 4. Group life insurance benefits

Determine imputed income

Answer 1

4. Imputed income determined as follows
   a. Table I rate for attained age on last day of tax year multiplied by amount of insurance in excess of $50,000 divided by $1000
   b. Employer contributions subtracted from the calculated amount
   
   5. To illustrate employee covered for $125,000 contributed $0.10 monthly for each $1000 of coverage
      a. Table I monthly rate for attained age: 0.23
      b. Table I cost (($125,000 - $50,000)/$1,000)0.2312 = $207
      c. Employer contributions: (125,000/1,000)0.1012 = $150
      d. Imputed income: $207 - $150 = $57