Definition of Income
Predisability Earnings:
Your Predisability Earnings will be based on your earnings in effect on your last full day of Active Work. Your Predisability Earnings will be based on the prior tax year as shown on your applicable IRS Form(s), as described below divided by 12 or during your period of employment if less than 12 months. Any subsequent change in your earnings after the last day of Active Work will not affect your Predisability Earnings.
The appropriate income site for establishing Predisability Earnings for each entity is as follows:
a. C-Corporation Shareholder or employee: The greater of W-2 Box 1 or Box 5.
b. Partner, P.C. Partner, Limited Liability Company (LLC) or Limited Liability Partnership (LLP) Owner-Employee or employee: Schedule C - line 31 or Schedule K-1- box 1 and or box 4 and or the greater of W-2 Box 1 or Box 5.
c. Sole Proprietor or employee: Schedule C- line 31 or the greater of W-2 Box 1 or Box 5.
d. S-Corporation Shareholder or employee: Schedule K-1- box 1 and or box 4 and or the greater of W-2 Box 1 or Box 5
Your Predisability Earnings will be based on your earnings in effect on your last full day of Active Work. Your Predisability Earnings will be based on the prior tax year as shown on your applicable IRS Form(s), as described below divided by 12 or during your period of employment if less than 12 months. Any subsequent change in your earnings after the last day of Active Work will not affect your Predisability Earnings.
The appropriate income site for establishing Predisability Earnings for each entity is as follows:
a. C-Corporation Shareholder or employee: The greater of W-2 Box 1 or Box 5.
b. Partner, P.C. Partner, Limited Liability Company (LLC) or Limited Liability Partnership (LLP) Owner-Employee or employee: Schedule C - line 31 or Schedule K-1- box 1 and or box 4 and or the greater of W-2 Box 1 or Box 5.
c. Sole Proprietor or employee: Schedule C- line 31 or the greater of W-2 Box 1 or Box 5.
d. S-Corporation Shareholder or employee: Schedule K-1- box 1 and or box 4 and or the greater of W-2 Box 1 or Box 5