When the user marks the Use Full Premium for Exempt Amount, the system will break the premium down into taxable and exempt pieces as per the functionality of the calculator. However, the system will set the exempt amount to the full premium amount. When using this option, it is advisable for the user to set up posting account setup such that the benefit expense and benefit payable accounts are set to post to the same account for the taxable portion of the premium. This will ensure that accounts are kept in balance.

Since the IRS dictates imputed income based on coverage amount irrespective of actual cost of coverage, it is possible that the system will calculate a negative amount for the exempt portion when the taxable benefit (calculated by IRS) exceeds total benefit cost.