Guest Mark Porter Posted August 7, 2001 Share Posted August 7, 2001 I have a situation where an employer provides up to $50,000 of group term life and in addition has a voluntary buy up program whereby employees can buy additional coverage over the $50,000 provided by the employer and if they do so the employer will pay for 80% of the additional voluntary coverage. Is that amount subject to Table I reporting? Link to comment Share on other sites More sharing options...
Michael Devault Posted August 7, 2001 Share Posted August 7, 2001 Here are the calculation steps, which must be performed on a monthly basis. 1. Determine the amount of group term life insurance provided for the month. 2. Subtract $50,000. 3. Multiply the difference, if any, by the appropriate Table I rate. 4. Subtract the amount the employee pays for the insurance. In your instance, the insurance in excess of $50,000 is subject to the Table I rates. That amount is then reduced by the 20% of the cost that the employee pays. The rest is taxable income to the employee. Hope this helps. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now