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â¢ Insured Earnings is the earnings as. described in your policy and used to. calculate your employeeâs benefits. â¢ It can vary depending on the definition. you choose for each eligibility group. â¢ Changes to insured earnings become. effective at the Insured Earnings.
Benefits such as pay for vacation time are considered insurable for tax purposes. Piecework, as frequently seen in a factory setting, offers insurable earnings. Taxes due for a given period are based on the sum total of the wages, salaries, commissions and other forms of insurable earnings.he provision of a salary, essentially a fixed amount of pay for each pay period, is also considered a type of insurable earnings. Other forms of compensation also fit into the broad category of insurable earnings.