Configure Wage Basis Rules for State Family Leave Insurance

If your organization is operating in a state that offers Family Leave Insurance (FLI), you must configure your wage basis rules appropriately.

Configure the wage basis rules for your Imputed Earning, Pretax Deduction, and Supplemental Earnings elements if they're taxable for the specific state FLI.

In this example, you're operating in Massachusetts and need to edit the wage basis rules for Group Term Life (GTL) earnings to be taxable for FLI.

Make Group Term Life Taxable for FLI

To make your GTL earnings taxable for FLI:

  1. Start the Component Group Rules task.

  2. Search for your US legislative data group.

  3. Under Component Group, click Regional.

  4. Under Calculation Component Group, expand Regional, and then Related Deductions, and then State FLI.

    Note: If you were configuring wage basis rules for New Jersey or New York FLI, you would expand State Disability instead of State FLI.
  5. Select Wage Basis Rules.

  6. Under State FLI: Wage Basis Rules, click Create.

  7. Enter an effective date.

    Use either your implementation date or the earliest date a pay period exists.

  8. Select MA as the state.

  9. Select the Imputed Earnings primary classification and Group Term Life secondary classification.

  10. Select Yes to make this subject to wage basis rules.

  11. Click Submit.