Written by BAS | Sep 6, 2018 2:22:27 PM
Q. We provide our employees a life insurance benefit. Someone mentioned that we can’t do this on a tax free basis. Is that true?
A. Employer-paid group-term life insurance in excess of $50,000 is a taxable fringe benefit. The imputed cost of coverage from the amount of insurance over $50,000 must be included in the employee’s W-2 income, using the IRS premium table.