![]() ![]() To report the GTLI premium amount on a paycheck: If the employee will not receive any more wages for the calendar year, the employer may either pay all of the taxes for the employee (which requires grossing-up the check), or advance the funds to the employee to cover the taxes on the fringe benefit items. Non-Cash Fringe Benefits, like GTLI, should ideally be reported on a paycheck where the employee has regular wages to offset the taxes on the fringe benefit item(s). ![]() Group Term Life Insurance premiums are entered on a paycheck as a company contribution for taxation purposes. The value of the premiums for the portion of GTLI that is over $50,000 is considered part of the employee's total compensation for tax purposes, even though the employer has paid them on the employee's behalf. If an employer provides more than $50,000 in Group Term Life Insurance coverage as a benefit, the cost of the excess insurance coverage (the part that is over $50,000) is a non-cash Fringe Benefit.
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