What is imputed income in SAP PA-BN - Benefits?

SAP Term: imputed income

• Component: PA-BN

• Component Name: Benefits

• Description: An economic benefit that an employee obtains through performing services for themselves or in using their own property. The value of this benefit is added to an employee’s taxable wages, to withhold income and employment taxes from these wages. The benefit is generally pre-tax but in some cases, for example, adding a non-legal dependant to a health insurance plan, the additional value of the benefit is post-tax. The amount is subject to federal insurance contributions act FICA tax and possibly state income tax depending on the state.

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• Key Concepts: 
  Imputed income is a type of income that is not actually received, but is instead calculated and assigned to an employee for tax purposes. In SAP, imputed income is used in the PA-BN Benefits component to calculate the taxable value of certain benefits, such as company cars or housing allowances. 
  
  How to use it: 
  In SAP, imputed income is calculated by taking the value of the benefit and subtracting any amount that the employee has already paid for it. The remaining amount is then taxed as if it were actual income. This calculation can be done manually or automatically using the PA-BN Benefits component. 
  
  Tips & Tricks: 
  When calculating imputed income in SAP, it is important to remember that the taxable value of a benefit may be different from its actual value. For example, if an employee pays part of the cost of a company car, then only the remaining amount will be taxed as imputed income. 
  
  Related Information: 
  Imputed income is a concept used in many countries around the world, and each country has its own rules and regulations regarding how it should be calculated and taxed. It is important to consult with a tax professional to ensure that all calculations are done correctly.