Reporting group term life insurance in excess of $50,000

If you select to calculate the value of Group Term Life Insurance coverage over $50,000 and you had a group term life (GTL) pay code in place for the entire year to capture the cost of this coverage, report the cost using the Code C Group Term Life Reportable Insurance field located at Payroll Administrator > Regulatory Reporting > Year End Reporting > Employee Configurable Fields.

If an employee receives employer paid GTL insurance coverage for more than $50,000, the cost of excess life insurance is considered taxable income to the employee. In addition, you must report the cost of GTL for spouse or eligible dependents if the coverage is more than $2,000.

GTL amounts print with a code C in Box 12 of the W-2.