Group Term Life Insurance Table 1 Costs
The end of the 2016 tax year is an appropriate time to review the procedures to determine imputed income on group term life insurance.
Many employers provide group term life insurance plans at no premium cost to employees. The value of the first $50,000 of employer-provided benefit is excluded from the gross income of a covered employee. Amounts in excess of $50,000 must be imputed as income to the employee in the employee’s taxable wages. These costs are determined by rates established by the IRS and are more commonly known as Table 1.
Click here to see Table 1.