Loss of Income Policy Payout

Non-taxable income items are not very common. However, the income in respect of payments received from a loss of income policy might be non-taxable.

SimplePay has a built-in item to accommodate the special tax and reporting requirements related to regular non-taxable amounts received from a loss of income policy. This income will be reported under code 3602.

To add such non-taxable income from a loss of income policy:

• Go to Employees and select the relevant employee.
• Click on Add next to Regular Inputs.
• Click on Loss of Income Policy Payout.
• Enter the Fixed Amount that will be paid to the employee every pay period.
• Click Save.