Configure Wage Basis Rules for Group Term Life Earnings

In this example, you want to change the predefined wage basis rules for your Group Term Life (GTL) earnings.

In this case, you're changing the Federal component from Not withholdable to Withholdable.

This involves two actions.

Deprecate the Not Withholdable Rule

To cancel the default rule:

Start the Component Group Rules task.
Search for your US legislative data group (LDG).
Under Component Group, click Federal.
Expand Federal, then Related Deductions, and then Not Withholdable.
Select Wage Basis Rules.
Under Not Withholdable Federal Tax: Wage Basis Rules, click Create.
Enter an effective date.
Select the Imputed Earnings primary classification and Group Term Life secondary classification.
Select No for Select all secondary classifications.
Select No to make this exempt from wage basis rules.
Click Submit.

To define the rule:

Start the Component Group Rules task.
Search for your US LDG.
Under Component Group, click Federal.
Expand Federal, then Related Deductions, and then Not Withholdable.
Select Wage Basis Rules.
Under Not Withholdable Federal Tax: Wage Basis Rules, click Create.
Enter an effective date.
Select the Imputed Earnings primary classification and Group Term Life secondary classification.
Select No for Select all secondary classifications.
Select Yes to make this subject to wage basis rules.
Click Submit.