Paying for Supplemental Life Premium on Pre-Tax Basis

[Guest mander]

What are the advantages and disadvantages of letting an employee pay for the cost of supplemental life on a pre-tax basis?

[Sandra Pearce]

When group term life insurance is paid for pre-tax the insurance becomes employer "paid" group term life insurance and any benefit in excess of $50,000 (including other employer paid group term life insurance) is taxable to to the employee using the IRS tables.