Waiting Period for Imputed Income Calculations

You can configure the application to determine when you want the imputed rate for participants to reflect imputed income calculations.

This especially applies when you have imputed plans whose coverage starts after a waiting period.

However, you need to process an extra life event on the day the coverage starts so that the correct rates are sent to payroll. Future-dated benefits coverages are not included in the imputed rate calculation.

For example, an employee joins your organization on Aug 1, 2022 and enrolls into the Basic Life insurance plan. You have configured a waiting period of 60 days on this plan. So the coverage starts on Oct 1, 2022 and the employee shouldn't be paying for this imputed income before that date. To make this configuration work, you do these steps:

1. Process the new hire life event on Aug 1, 2022.
2. On Oct 1, 2022, the day when the coverage starts after the waiting period, you need to process another life event that recalculates the imputed income. This ensures that the correct imputed income value is sent to payroll.