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

Note: If you select to calculate the value of Group Term Life Insurance coverage over $50,000 using BN150 and you had a GTL Pay Code in place for the entire year to capture the cost of this coverage, report the cost using the GTL Pay Class field on the Box 12 topic on Year End Parameters (PR27.1).

If an employee receives employer paid group term life (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.

A payroll year is required.