Group term life insurance payroll item setup

Group term life insurance payroll item setup

When employer-provided group term life insurance (GTLI) exceeds $50,000 for an employee, the value of the excess coverage (as determined by the IRS) must be reported as income, minus any after-tax premiums paid by the employee.

The imputed cost (value of the excess benefit) coverage is subject to Social Security and Medicare taxes, so you must report that amount directly to us for inclusion on the employee s W-2 form and on the employer s 940 and 941 forms.

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